On 26 March 2020, SIA announced a S$5.3 billion issuance of new equity and an issuance of up to S$9.7 billion in mandatory convertible bonds (MCB). Temasek, SIA’s largest shareholder with a 55.46% stake in the company, committed to subscribing its pro-rata share of the new money and to underwrite any balance that is not subscribed by other existing shareholders.

The new money comes in two tranches. The first tranche is worth S$8.8 billion and it involves S$5.3 billion in equity rights and S$3.5 billion in rights MCB issuances. The second tranche is another MCB issuance worth S$6.2 billion which will be issued within 15 months of being approved by shareholders. Given the uncertainty as to the recovery of global travel demand, the second tranche is essentially a back-up should the initial S$8.8 billion be insufficient.

Exhibit 1. Summary of the Rescue Package

Source: SGX Filings

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