Singapore Air Mulling More Debt Points to Potential Dollar Bonds
- Carrier wants to diversify its bond issuances, CFO says
- UOB Kay Hian says would be natural to raise funds in dollars
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As Singapore Airlines Ltd. considers broadening its debt sources amid plans to spend S$30.1 billion ($22 billion), some analysts are pointing to the likelihood of a shift to U.S.-dollar bonds and the higher borrowing costs that may entail.
Chief Financial Officer Stephen Barnes said on May 19 that the carrier is looking to raise funds in different currency bonds. “Frankly, we will want to diversify,” he said, without mentioning any specific currencies. While the local-currency market has been “quite receptive” to its issues, the airline is in “no pressing hurry” to diversify its funding and will take its time over the next year or so to look at options, Barnes said.