finance news

Singapore Airlines raises $1.5B for sale, leaseback of 11 aircraft

Singapore Airlines raises $1.5B for sale, leaseback of 11 aircraft

Singapore’s flag carrier airline, Singapore Airlines, has reportedly raised a sum of USD 1.5 billion for the leaseback and sale of 11 of its widebody aircraft. Amid the pandemic, the airline has been struggling with concerns of liquidity and will utilize the money to help it navigate the present low demand.

As part of the announcement associated with the leaseback and sale, Singapore Airlines provided an update regarding its liquidity situation. The airline confirmed that it had secured an approximate sum of S$15.4 billion in fresh liquidity since 1st April 2020. This comprises the latest transaction as well as S$8.8 billion secured in a rights issue back in June 2020.

As per sources, the present transactions comprise the procurement of one of every type of aircraft by Munzinich and Co Limited as well as Aergo Capital Limited. Furthermore, EastMarchant/Crianza Aviation purchased two Boeings and one Airbus. In addition, Altavair bought the remainder of the four Airbus aircraft.

Like several airlines, Singapore Airlines has been battling with liquidity issues through the recent months as the pandemic continues to affect the revenue. The leaseback and sale of the 11 aircraft forms part of an ongoing attempt for raising cash-equivalent assets as well as cash.

According to a statement by the airline, it had completed the leaseback as well as sale of four Boeing 787-10s and seven Airbus A350-900s. The process involved a total of four parties and the airline secured a sum of S$2 billion.

A leaseback and sale transaction is when an airline sells its aircraft. However, it takes the planes back on a lease. This is an effective manner of raising money without cutting the number of aircraft that is available for use.

According to reliable sources, airline secured an additional sum of S$2.2 billion by issuing convertible notes and bonds and another sum of S$2.1 billion from secured financing. The airlines also has the alternative of raising a further sum of S$6.2 billion in obligatory convertible bonds at the Annual General Meeting in the month of July.

Source credit:

About the author

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.