Korean Air (A-) secured 660 billion won in a corporate bond demand forecast. This means that demand exceeded three times the offering amount of 200 billion won. Korean Air is also reportedly considering increasing the issuance of corporate bonds up to 400 billion won.
According to the financial investment industry on the 20th, Korean Air sought to raise a total of 200 billion won and received buy orders totaling 660 billion won. For the three-year bond issuance of 150 billion won, it received orders of 579 billion won, and for the five-year bond issuance of 50 billion won, it received 81 billion won in orders.
Korean Air presented interest rates of -30 to +30 basis points (bps) for the three-year bonds based on the average interest rate (market rate) of individual private bond rating agencies, and -20 to +20 bps for the five-year bonds, achieving target amounts at -15 bps for the three-year bond and 0 bps for the five-year bond.
Founded in 1962, Korean Air is the largest national airline in South Korea, with Hanjin KAL as its largest shareholder. At the end of last year, it completed the acquisition of a 63.9% stake in Asiana Airlines. Korean Air plans to operate Asiana Airlines as a subsidiary for about two years before fully integrating it.