Singapore Airlines will offer all shareholders S$5.3 billion in new equity and up to a further S$9.7 billion through a ten-year mandatory convertible bonds.
Both will be offered on a pro-rata basis via a rights issue, and both issuances will be treated as equity in the company’s balance sheet.
Singapore Airlines’ majority shareholder, state-fund Temasek Holdings, said it would underwrite the sale of shares and convertible bonds for up to S$15 billion.
The carrier said it would use the cash to weather the Covid-19 storm and to expand once it has passed.
Singapore Airlines has also arranged a S$4 billion bridge loan facility with DBS Bank.
This money would be used to support the company’s near-term liquidity requirements, the airline added, until the share offering could be completed.
Singapore Airlines chairman, Peter Seah, said: “This is an exceptional time for the SIA Group.
“Since the onset of the Covid-19 outbreak, passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide.
“We moved quickly to cut capacity and implement cost-cutting measures.”
He added: “We have also worked closely with the Singapore government to bring Singaporeans home safely during this time.
“At the same time, we…