It points out that SIA has built up liquidity buffers through the pandemic, including from shareholders, which serve as a “multiplier effect” for further fundraising.
Notably, SIA’s major shareholder Temasek has provided important undertakings on the airline’s rights issuances in 2020.
Temasek has also provided undertakings on the $6.2 billion additional mandatory convertible bonds.
OCBC says it favours the SIASP 3.50% ‘30s as the bond offers a yield pick-up of about 20 basis points in implied-Singapore dollar terms.
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It also favours the US dollar-denominated SIASP 3.00% ‘26%, which is paying 2.50% in implied-Singapore dollar terms.
OCBC has a “neutral” rating for the SIASP 3.16% ‘23s.
Cover photo: Bloomberg
