SIA reveals partial redemption of 50% of zero coupon MCBs

The aggregate amount of the right mandatory convertible bonds (MCBs) is at $3.09b.

Singapore Airlines declared its intention to partially redeem 50% of the zero coupon mandatory convertible bonds, with the aggregate value at $3.09b.

According to its bourse filing, the partial redemption will start on 24 June 2023 on a pro-rata basis and at the relevant accreted principal amount, being at 108.243% of the relevant principal amount of the rights MCBs.

But as 24 June 2023 is not a business day, the redemption money will be paid on 26 June 2023. 

In accordance with Condition 6.5 of the Rights MCBs, bondholders will not be entitled to any interest or other payment for any delay after the redemption date in receiving the redemption money on 26 June 2023.

“The Issuer shall make or cause to be made payment of the redemption money in respect of the Rights MCBs in Singapore dollars to the Depository for the account of the holders of the Rights MCBs,” read the statement.