Singapore Airlines plans to raise $500 million from a sale of 10-year, 3.22% bonds, according to a person familiar with the matter.

The city-state’s national carrier hired Australia & New Zealand Banking Group, DBS Group Holdings, Oversea- Chinese Banking Corp. and United Overseas Bank to manage the sale, the person said, asking not to be identified as the details are private.

 

Singapore Airlines spokesman Nicholas Ionides said a statement will be sent to the Singapore stock exchange after 5:00 p.m. local time today, declining to comment further.

 

The airline industry will post a US$2.5 billion ($3.48 billion) profit in 2010 as Asian economies recover, reversing two years of losses, the International Air Transport Association said this month. Singapore Airlines has $900 million of 4.15% notes due in December 2011, according to data compiled by Bloomberg.

 

The extra yield investors demand to own the 2011 bonds instead of similar-maturity Singapore government debt fell 6 basis points to 123 basis points today, the lowest since November 18, 2008, according OCBC prices on Bloomberg. A basis point is 0.01 percentage point.