Korean Air issues floating rate Ex-Im bond for 747-8F financing

Source: Flightglobal.com
This story is sourced from Flightglobal.com

Korean Air has returned to the capital markets for the financing of a new Boeing 747-8F aircraft, which delivered on 28 March.

The carrier issued a floating rate $165.53 million US Export-Import Bank-guaranteed bond jointly arranged by Credit Agricole Corporate & Investment Bank and Goldman Sachs.

The aircraft (MSN 37654) is the second of three longhaul aircraft financed this year through an Ex-Im guaranteed bond.

Last month Korean Air issued a $149 million bond, KE Export Leasing (2013-A), refinancing a 777F (37640) aircraft.

The pre-funded floating rate bond, which was priced at three-month US Libor plus 0.25% by BNP Paribas, marked the first time an Asia Pacific carrier tapped this market for financing.

The transaction was also the first Ex-Im-guaranteed bond issuance by Korean Air.

In February Korean Air asked Ex-Im for $474 million in financing support for the delivery of one 747-8F, one 777-200F and one 777-300ER aircraft.

According to Flightglobal's Ascend Online database, the 777 passenger aircraft is scheduled for delivery in June. Ascend says the aircraft is mandated to Citibank