SIA will also be running out of cash soon

[LITTLEREDDOT]

So Temasek bought SIA bonds at 3.375% when it could invest in other airline bonds at 4.375% or higher?

Singapore Airlines raises $808m on cheap from US dollar bond offering​

SIA will issue the notes under its $10 billion multi-currency medium-term note programme. PHOTO: ST FILE

Jan 13, 2022

SINGAPORE (BLOOMBERG, REUTERS) - Singapore Airlines became the first carrier to tap the market for dollars in 2022, raising funds at a discount to peers thanks to its government backing.
The flag carrier sold US$600 million (S$808 million) of seven-year bonds at 3.375 per cent and a price of 99.273, lower than the average yield at issuance of 4.375 per cent for global airline bonds sold in 2021, according to Bloomberg-compiled data.
Hard-hit like many of its peers due to the pandemic, the airline has sought to cover expenses by raising $22.4 billion via a rights offering and by issuing debt. Temasek Holdings is SIA’s largest shareholder.
The Singapore government’s decision last year to allow entry of fully-vaccinated people from two dozen countries had given the city state’s travel sector a lift. But the Government last month froze the sale of tickets for arriving flights under its quarantine-free travel programme for four weeks, citing the risk from the fast-spreading Omicron coronavirus variant.
SIA’s’s newly issued bonds “could offer value given its support from Temasek and ample liquidity, offset by a slower recovery due to the lack of a domestic market,” said Bloomberg Intelligence analyst Sharon Chen.
Though still way below its pre-pandemic level, the number of passengers at Changi Airport rose over the course of 2021. SIA recorded a “meaningful increase in traffic,” though the onset of the Omicron coronavirus variant led to a temporary suspension of quarantine-free travel.
SIA isn’t the only Asian carrier looking to tap funds this week. Korean Air Lines is marketing a Samurai bond, which is guaranteed by the Export-Import Bank of Korea, at 0.45 per cent. It is to be priced on Friday.

This is SIA’s second United States dollar bond offering. A year ago, it raised US$500 million in a five-year issue with a 3 per cent coupon.
The airline was aiming to raise between US$500 million and US$750 million, sources said.
Despite the fall in travel demand, SIA has been spending billions of dollars renewing its fleet to help lower fuel burn and carbon emissions.
Net proceeds from the issue will be used for aircraft purchases, aircraft-related payments and general corporate or working capital purposes, including to refinance existing borrowings, SIA said.
SIA will issue the notes under its $10 billion multi-currency medium-term note programme.
The joint global coordinators for the issuance are Citigroup and DBS Bank. The banks are also joint lead managers along with Standard Chartered Bank Singapore and BNP Paribas.
SIA shares were trading unchanged at $5.02, as of 11.33am on Thursday.

 

[Loofydralb]

So Temasek bought SIA bonds at 3.375% when it could invest in other airline bonds at 4.375% or higher?

Singapore Airlines raises $808m on cheap from US dollar bond offering​

SIA will issue the notes under its $10 billion multi-currency medium-term note programme. PHOTO: ST FILE

Jan 13, 2021

SINGAPORE (BLOOMBERG, REUTERS) - Singapore Airlines became the first carrier to tap the market for dollars in 2022, raising funds at a discount to peers thanks to its government backing.
The flag carrier sold US$600 million (S$808 million) of seven-year bonds at 3.375 per cent and a price of 99.273, lower than the average yield at issuance of 4.375 per cent for global airline bonds sold in 2021, according to Bloomberg-compiled data.
Hard-hit like many of its peers due to the pandemic, the airline has sought to cover expenses by raising $22.4 billion via a rights offering and by issuing debt. Temasek Holdings is SIA’s largest shareholder.
The Singapore government’s decision last year to allow entry of fully-vaccinated people from two dozen countries had given the city state’s travel sector a lift. But the Government last month froze the sale of tickets for arriving flights under its quarantine-free travel programme for four weeks, citing the risk from the fast-spreading Omicron coronavirus variant.
SIA’s’s newly issued bonds “could offer value given its support from Temasek and ample liquidity, offset by a slower recovery due to the lack of a domestic market,” said Bloomberg Intelligence analyst Sharon Chen.
Though still way below its pre-pandemic level, the number of passengers at Changi Airport rose over the course of 2021. SIA recorded a “meaningful increase in traffic,” though the onset of the Omicron coronavirus variant led to a temporary suspension of quarantine-free travel.
SIA isn’t the only Asian carrier looking to tap funds this week. Korean Air Lines is marketing a Samurai bond, which is guaranteed by the Export-Import Bank of Korea, at 0.45 per cent. It is to be priced on Friday.

This is SIA’s second United States dollar bond offering. A year ago, it raised US$500 million in a five-year issue with a 3 per cent coupon.
The airline was aiming to raise between US$500 million and US$750 million, sources said.
Despite the fall in travel demand, SIA has been spending billions of dollars renewing its fleet to help lower fuel burn and carbon emissions.
Net proceeds from the issue will be used for aircraft purchases, aircraft-related payments and general corporate or working capital purposes, including to refinance existing borrowings, SIA said.
SIA will issue the notes under its $10 billion multi-currency medium-term note programme.
The joint global coordinators for the issuance are Citigroup and DBS Bank. The banks are also joint lead managers along with Standard Chartered Bank Singapore and BNP Paribas.
SIA shares were trading unchanged at $5.02, as of 11.33am on Thursday.

Jan 13, 2021?

wtf?

 

[LITTLEREDDOT]

Jan 13, 2021?

wtf?

It is 2022. Corrected.

 

[laksaboy]

The Singapore government’s decision last year to allow entry of fully-vaccinated people from two dozen countries had given the city state’s travel sector a lift. But the Government last month froze the sale of tickets for arriving flights under its quarantine-free travel programme for four weeks, citing the risk from the fast-spreading Omicron coronavirus variant.

So their cunning little plan backfired. Agree?

 

[Loofydralb]

Funny how SIA keeps digging themselves deeper into debt but amazingly the share price still maintains, even as their cash flow operations fails to improve.

So if you cannot see the invisible hands here playing hanky panky, and wants to dive in, be prepared that those same invisible hands will play you out.

 

[zeebjii]

Funny how SIA keeps digging themselves deeper into debt but amazingly the share price still maintains, even as their cash flow operations fails to improve.

So if you cannot see the invisible hands here playing hanky panky, and wants to dive in, be prepared that those same invisible hands will play you out.

Because people know temasek (govt) will back it no matter what happens?

 

[countryman]

Funny how SIA keeps digging themselves deeper into debt but amazingly the share price still maintains, even as their cash flow operations fails to improve.

So if you cannot see the invisible hands here playing hanky panky, and wants to dive in, be prepared that those same invisible hands will play you out.

Share price is based on buyer / seller sentiments... From the way u write, are you waiting for the price to plunge to buy?

 

[Loofydralb]

Because people know temasek (govt) will back it no matter what happens?

And what happens when one dayt hey say that they've dug a hole too big to fill?

Share price is based on buyer / seller sentiments... From the way u write, are you waiting for the price to plunge to buy?

It's a warning to be nimble and know when to get out, because we may never know when they will turn against investors

 

[countryman]

And what happens when one dayt hey say that they've dug a hole too big to fill?


It's a warning to be nimble and know when to get out, because we may never know when they will turn against investors

Its difficult cos no one will know when to get out or when to buy unless u have insider information!

 

[Loofydralb]

Its difficult cos no one will know when to get out or when to buy unless u have insider information!

Not that difficult really.
Shares diluted. They own additional shares. They will want to recover their 'loans' when the price goes up.

 

[countryman]

Not that difficult really.
Shares diluted. They own additional shares. They will want to recover their 'loans' when the price goes up.

U must be an experience investor.... I'm always outsmarted by the mkt... ((

 

[rushifa666]

So their cunning little plan backfired. Agree?

You shoukd ask how come WHO certified high risk cecavirus country can have vtl.

 

[LITTLEREDDOT]

Singapore, Hong Kong left behind as global travel rebounds​

Mon, 14 February 2022

The transit hubs of Hong Kong and Singapore are being shunned as travellers seek to avoid weeks in hotel isolation on arrival or a raft of testing swabs. (PHOTO: REUTERS/Edgar Su)

(Bloomberg) — A global travel divide is deepening as some countries ditch Covid-19 restrictions including quarantines, isolation and even mandatory testing for good, while others cling to years-old curbs.

Lingering barriers to travel in Asia in particular are isolating the region and its tourism-reliant economies, just as the recovery in Europe and the US accelerates. In the UK., authorities are dumping unpopular pre-flight tests and now only require proof of vaccination as they strive to normalise international air traffic.

The marquee transit hubs of Hong Kong and Singapore are being shunned as travellers seek to avoid weeks in hotel isolation on arrival or a raft of testing swabs. Airlines, which before the pandemic operated about 30,000 flights a month to the two Asian gateways, have slashed that number to just 4,514 in February, according to aviation data company Cirium.

There’s little prospect of immediate change. Hong Kong — which quarantines overseas arrivals for as long as 14 days, and effectively bars flights from an array of countries deemed to be high risk — is sticking to a goal of eliminating the virus even as cases in the community surge. Last week, authorities there tightened restrictions even further, extending gathering limits to private premises for the first time.

And while Singapore has struck more than two dozen agreements with other countries to set up vaccinated air-travel lanes, it still requires overseas visitors to undergo almost a week of daily coronavirus tests during their stay. Anyone attending the city’s scaled-back biennial air show this week must also test negative each day as a condition of entry.

These impediments to flying extend thee financial pressure on airlines primarily plying routes in Asia, from Cathay Pacific Airways Ltd. and Singapore Airlines Ltd. to budget carriers Cebu Air Inc. in the Philippines and Malaysia-based AirAsia. While China holds the key to a broad recovery — its vast market could trigger a global travel resurgence all on its own — the country is expected to keep its borders sealed for most of this year at least.

The uneven air-travel rebound is likely to continue for the rest of 2022 as countries in Europe and North and South America continue to reopen and Asian restrictions put off travelers, according to Rob Morris, Cirium’s global consultancy chief.

“The two-speed recovery is very evident,” he said. “A significant level of intra-Asia traffic touches China and with borders there likely to remain closed to international arrivals through late 2022, the recovery in Asia will inevitably be slower than other regions.”

Choking the Flow​

Within Europe, flying will surpass 75% of pre-pandemic levels next month, according to Cirium data from airline schedules. Inside the U.S., the figure will be 86%.
Asia’s Covid curbs are choking the flow of visitors to the countries that need them most. Australia’s Jetstar recently delayed a resumption of flights to Bali from Melbourne and Sydney, citing the island’s five-day quarantine requirement for vaccinated arrivals. “We look forward to flying into Bali when quarantine restrictions ease further,” said Jetstar, which is owned by Qantas Airways Ltd.

Thailand this month resumed quarantine-free tourism for vaccinated travelers. But the program’s requirements for multiple tests, registration, and a certain baseline of insurance cover have drawn criticism. Thailand expects less than 10 million foreign visitors this year, down from 40 million before the virus.

“The testing requirements are a disincentive,” said Hannah Pearson, founding partner of Kuala Lumpur-based tourism consultancy Pear Anderson. “The fact that Singapore and Thailand, the two leaders of reopening in the region, are still taking this intense approach to testing, may encourage other countries to behave similarly.”

The cost of daily swabbing for a family visiting Singapore is prohibitive enough, said Pearson. The mandatory test on arrival is S$125 ($93). On top of that, visitors run the risk of returning a positive result, then paying to quarantine in a hotel and wasting their trip, she said.

No Tests​

At some point, Southeast Asia’s tourist hubs will need to demand less of overseas visitors, Pearson said. That might mean downgrading to a rapid antigen test on arrival, or waiving tests completely for those who already recorded a negative result before they took off, she said.

China and Hong Kong, meanwhile, are showing no sign of giving up their battle to contain the virus, even as other parts of the world treat it as endemic. Chinese authorities this month locked down 3.6 million residents of the southwestern city of Baise after identifying fewer than 100 cases.

The central role that China and Hong Kong play in Asia’s aviation market means their Covid-Zero approach weighs on neighbouring nations. The number of scheduled flights into all of Asia from outside the region this month is little more than half the total before the pandemic, Cirium data show.

Some countries in the Asia-Pacific region are dropping barriers. Australia last week said vaccinated tourists will be allowed to enter from Feb. 21, while New Zealand will finally begin reopening to the world at the end of this month, although arrivals will still initially need to isolate for 10 days.

The reluctance of travelers to tolerate quarantine after they land is clear: It typically deters at least 90% of potential passengers, Auckland International Airport Ltd. said this month, citing the experience of airlines in other markets.

The speed at which passengers return to the air once restrictions and mandatory tests are removed also indicates how much these rules hinder travel.

British Airways and Virgin Atlantic Airways Ltd., for example, reported a surge of interest in long-haul flights in January. That was just days after a requirement that vaccinated arrivals take a Covid test before boarding a flight into England was dropped. On Feb. 11, the UK also stopped requiring vaccinated travelers to take a Covid test after arriving in England.

‘Spreading Widely’​

The UK government is now depending on vaccines as it takes steps to live with the virus, recognising inoculation certificates from over 180 countries and territories.
The omicron variant is already “spreading widely in the community,” the government said as it made the change. Testing incoming vaccinated travelers, UK's Transport Secretary Grant Shapps said, had “outlived its usefulness.”

Buoyed by that decision, the aviation industry is lobbying the U.S. government to scrap pre-departure tests for incoming vaccinated passengers there as well.
In a Feb. 2 letter to the White House, travel industry groups led by Airlines for America argued Covid was already widespread in the U.S., and pre-flight tests “are unlikely to change that fact.”

The letter cited the UK as a precedent, as well as the European Union’s January recommendation that member states remove intra-Europe Covid travel restrictions.
In Hawaii, talks are taking place to eliminate all travel restrictions — at least for domestic visitors — in coming months, the Washington Post reported last week, citing the state’s lieutenant governor, Josh Green.

Destinations in Asia are likely to continue to struggle to lure travelers for short breaks, said Volodymyr Bilotkach, associate professor in air-transport management at the Singapore Institute of Technology.

“Why come to Singapore for four to five days and pay for all the extra tests facing the risk of being stuck in your hotel room, when you can go to New York without having to worry about all this stuff?” he said.

©2022 Bloomberg L.P.

 

[Eisenhut]

Thats why migrate and live in amdkland is best

 

[laksaboy]

And while Singapore has struck more than two dozen agreements with other countries to set up vaccinated air-travel lanes, it still requires overseas visitors to undergo almost a week of daily coronavirus tests during their stay. Anyone attending the city’s scaled-back biennial air show this week must also test negative each day as a condition of entry.

So what's the point of VTL, or even vaccination?

 

[laksaboy]

You shoukd ask how come WHO certified high risk cecavirus country can have vtl.

So simple, just bribe the country you want to have a VTL with. Similar to how the EDB gets certain MNCs to set up shop here: throw money at them, generous tax discounts etc. Gong cheebai country wants to give you free money, of course accept lah.

 

[rushifa666]

Btw people sia announced a recruitment drive now. Either they have gone mad or the old staff is all going tk be laid off

 

[borom]

sia announced a recruitment drive now.......

Shows Temasek companies priorities- economic growth aka monies instead of people's health .
Hospitals, polyclinics bursting at the seams and they recruit for airlines , not health care/medical sector

 

[red amoeba]

Hiring cecas n atb in anticipation of VTL w India and China. Share is 5.3. Good buy ?

 

[sfugel]

Hiring cecas n atb in anticipation of VTL w India and China. Share is 5.3. Good buy ?

It's a buy call.