SIA given rights to redeem $3.8b zero coupon MCBs

There is over 110% redemption rate for the bonds.

After being the hardest hit by the onslaught of the pandemic, Singapore Airlines Limited (SIA) was granted the rights to redeem all the rights for the $3.8b zero coupon mandatory convertible bonds (MCBs).

“Notice is hereby given by the Issuer, pursuant to Condition 7.1 of the Rights MCBs, of its intention to redeem all of the Rights MCBs on 8 December 2022 (the “Redemption Date”) at the relevant Accreted Principal Amount, being 110.408 percent. of the principal amount of the Rights MCBs,” read the 25 October statement posted on the bourse.

SIA will make or cause payment of the redemption monies in respect of the Rights MCBs in Singapore dollars to the Central Depository for the account of the holders of the Rights MCBs.

“Such redemption moneys will be paid to the persons who, as at the date falling five business days before the Redemption Date, are shown in the records of the Depository as holders of a particular amount of the Rights MCBs, via the payment method as previously agreed between themselves and the Depository,” read the statement.