Korean Air has raised W350 billion ($310 million) from three corporate bonds issued on 15 April.
These are of W65 billion, W160 billion, and W125 billion principal, the flag carrier said in a same-day corporate disclosure.
The W65 billion bond matures on 14 October 2022 and bears about 2.32% interest. W60 billion of the gross proceeds is intended for debt repayment and W5 billion for operating expenses.
The W160 billion issuance has a two-year maturity and bears about 2.87% interest. W90 billion will go towards debt repayment and W70 billion for operating expenses.
Finally, the W125 billion instrument matures in three years and bears nearly 3.5% interest. W60 billion of gross proceeds are for debt repayment and W65 billion for operating expenses.
Korean Air expects to incur issuance fees totalling W1.3 billion across all three bonds.
All three bonds are fully underwritten. The Korea Development Bank, which is overseeing Korean Air’s acquisition of compatriot Asiana Airlines, has underwritten W1 billion of the W65 billion bond and W34 billion of the W160 billion issuance.
Korean Air tells Cirium: “The corporate bonds issued as of 15 April were very successful and we have achieved the [funds raised] way more than previously expected.”