Asiana Airlines said on the 23rd it will push to issue 200 billion won in perpetual bonds to bolster capital.
Asiana Airlines held a board meeting that morning and approved the issuance of the perpetual bonds as outlined. The issue date is the 26th.
The annual interest rate is 4.8%, and after one year from the issue date, a 2% adjustment margin will be added.
Thereafter, an additional 0.5% will be added every year starting four years after the issue date.
Asiana Airlines plans to strengthen its financial soundness, including improving its liability ratio, by expanding capital through this perpetual bond issuance.
Asiana Airlines succeeded in issuing the perpetual bonds after earning a BBB+, one notch higher than before, in the latest credit rating review.
It is the first time in about seven years since 2019 that Asiana Airlines has successfully issued perpetual bonds on its own credit without credit enhancement.
An Asiana Airlines official said, "With the sale of the cargo business unit completed, uncertainty over the merger has been removed, the parent company (Korean Air)'s willingness to support has been confirmed, and the credit rating has improved," adding, "We will continue efforts to strengthen financial soundness for a stable integration going forward."