Singapore Airlines (SIAL.SI) is aiming to raise $500 million to $750 million in a U.S. dollar bond deal, two sources with direct knowledge of the matter told Reuters on condition of anonymity as the information was not yet public.

Singapore Airlines confirmed it had hired banks to explore a deal, without commenting on its potential size.

The airline said, in an emailed response to Reuters, that it had mandated Citigroup Inc (C.N) and DBS (DBSM.SI) to lead the transaction, and BNP Paribas (BNPP.PA) as well as Standard Chartered (STAN.L) to be book runners.

“If we go ahead with the bond issuance, the proceeds will be used for general purposes including capital expenditure and refinancing of existing borrowings,” it said in the statement.

The deal is classified as Reg S, which means the bonds can only be purchased by investors outside of the United States.

If the deal proceeds, it will be the second dollar bond that Singapore Airlines has issued after its first transaction of the kind raised $500 million in January last year.

Travel-related deals remain popular among investors, despite the COVID-19 pandemic still taking a heavy toll on the industry.

Hong Kong’s Airport Authority last week raised $4 billion in U.S. dollar bonds which attracted $11.5 billion worth of demand from investors.

In late December, Singapore’s government said it had frozen new ticket sales under its vaccinated travel lane programme until Jan 20.

Source: Reuters