• Joe Breitfeller

Singapore Airlines Raises an Additional S$750 Million; IAG Extends American Express Partnership

Singapore Airlines announced on Thursday they have raised an additional S$750 million in secured financing using some Airbus A350-900s and Boeing 787-10s as collateral. Separately, IAG announced a multi-year extension of their partnership with American Express.


Singapore Airlines Airbus A350-900ULR - Courtesy Airbus

Yesterday (July 23, 2020), Singapore Airlines (SIA) announced that they have raised an additional S$750 million (US $542.5 million) in secured financing through long-term loans collateralized by some of the carrier’s Airbus A350-900 and Boeing 787-10 aircraft. Including the new transactions, SIA has now raised over S$11 billion (US $ 7.96 billion) in secured financing during FY 2020/2021. The financing is comprised of S$8.8 billion from a successful rights issue, S$1.65 billion in secured financing and over S$500 million in short-term unsecured lines of credit. All the company’s existing lines of credit that were due to mature in 2020 have been renewed until 2021 and beyond. SIA also retains the option to raise up to S$6.2 billion in additional mandatory convertible bonds through July 2021. Singapore Airlines will continue to explore additional liquidity measures as needed during these uncertain market conditions.


Source: Singapore Airlines


British Airways Co-Branded American Express Small and Medium Enterprise (SME) Business Card - Courtesy British Airways

Today (July 24, 2020) the International Consolidated Airlines Group (IAG) announced that they have signed a multi-year renewal of their worldwide commercial partnership with American Express. Under the agreements, American Express will pay IAG Loyalty approximately £750 million, a significant portion of which is a pre-purchase of Avios points that American Express will use in the UK and globally for its co-branded British Airways American Express Cards and Membership Award Program. IAG Loyalty is a subsidiary of the International Airlines Group and offers a wide range of services to both IAG airlines and B2B clients. Some of these services include Avios reward currency for the British Airways Executive Club, Iberia Plus, Aer Club and Vueling Club customer programs, as well as loyalty management tools.


Source: IAG

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