Singapore Airlines’ (C6L.SG) issue of $500 million 10-year fixed-rate notes with annual interest of 3.22% a positive move as terms attractive, says UOB KayHian, which has Buy call with $18.10 target, says Dow Jones.

Carrier will use proceeds for general corporate or working capital needs, for financing capex. House says long-term funding at 3.22% is “extremely attractive” rate by airline standards, “with the additional debt, SIA’s weighted average cost of capital will be lowered further and the stock should be re-rated upwards.”

Shares down 0.6% at $14.36.