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State investor Holding companies and other companies will inject up to S $ 19 ($ 13.27 ) of liquidity into banks (SIA) in the largest single rescue operation, Pandemic.

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The data provider said that the large-scale financing plan caused Singapore ' share price to fall by as much as 10.5% on Friday, highlighting the deep financial difficulties of the global aviation industry, and nearly one-third of the world's aircraft have been grounded due to the pandemic. cerium

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In a downturn caused by the virus, governments in many around the world have stepped in to help airlines, and the United States has provided $ 58 billion in aid. Many aircraft carriers have grounded their fleets and ordered thousands of unpaid leave workers to continue sailing.

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The 's S $ 5.3 billion equity and convertible bond portion of S $ 9.7 billion Temasek is responsible for fundraising, and Temasek owns about 55% of the .

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The airline also secured a S $ 4 billion transition loan with DBS Group Holdings Ltd, the country's largest lender, to support recent liquidity needs.

Also read: Covid-19: IIT Delhi manufactures anti-infective fabric to curb nosocomial infections

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"This is a special moment for Singapore Airlines Group," Singapore Airlines chairman Peter Seah said in a statement late Thursday.

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Singapore Airlines' share price fell to a rare trading pause earlier Thursday after investors fell to a 22-year low this week as investors feared the virus would have a profound impact on the company.

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"In the current tough situation, a rights issue is Singapore Airlines' best tactical move. This underscores the airline's strategic importance to Singapore and the island's status as both a financial center and an aviation hub," said head of aviation consulting firm Endau Analytics Shukor Yusof, said in a blog post.

Also read: As imported coronavirus cases rise, China bans foreign tourists

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Singapore Airlines said it would cut capacity by 96%, ground its entire fleet, and cut costs, affecting about 10,000 . This is known as the biggest challenge in history.

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The rights issue will be at a price of S $ 3 per share, a 53.8% discount to SIA's last trading price of S $ 6.5.

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Analysts at Bank of America told clients: "Although fundraising activities appear to have negatively impacted earnings and valuations, Singapore Airlines now appears to be able to weather the crisis as balance sheet concerns have been significantly reduced."

CEO Dilhan Pillay Sandrasegara said the deal will not only enable SIA to meet short-term liquidity challenges, but will also position it for growth beyond the pandemic.

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Singapore Airlines said it will use the funds raised from the rights issue to meet its capital and operating expenses needs.

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On Thursday, the Singapore announced more than $ 30 billion in new measures to help businesses and households cope with the pandemic.

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Treasury Secretary Heng Swee Keat also said Singapore Airlines would announce He welcomed Temasek's decision to support the airline.

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Qantas this week earned A $ 1.05 billion ($ 636.1 million) in for its aircraft fleet.

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