SIA Group has utilised S$6.2 billion ($4.6 billion) of S$8.8 billion gross proceeds from a rights issue completed in June.
The amount was drawn down between 8 June and 13 October, and besides a one-time S$2 billion repayment of a bridge loan from DBS Bank, key components are S$1.6 billion for debt servicing, S$1.3 billion in operating expenses, and S$1.1 billion for ticket refunds.
“While international air travel continues to be affected by the pandemic, the company will continue to be prudent and proactive in managing its liquidity,” it states in a 19 October disclosure to the Singapore Exchange.
The company used half the proceeds as at 14 August and drew down a further $1.8 billion between 15 August and 13 October.
In the latest period, operating expenses accounted for about $600 million and around $500 million went into ticket refunds for flights cancelled in view of ongoing border controls and travel restrictions.
About $700 million went towards servicing debt. This includes periodic interest payments for SIA Group’s unsecured and secured loans, as well as the repayment of funds previously drawn under certain lines of credit, which restores their availability as liquidity sources.
SIA Group adds that it has access to lines of credit for approximately S$1.9 billion, and per the terms of the June rights issue, can raise up to S$6.2 billion from issuing additional mandatory convertible bonds, if the crisis is prolonged, it says.
For the financial year ending 31 March 2021, it has to-date raised S$2.1 billion from a short-term unsecured loan and loans secured against its aircraft.
Previously, the company stated in June that it raised S$900 million and in July, S$750 million, from long-term loans secured by some of its Airbus A350-900 and Boeing 787-10 aircraft.