Korean Air plans to launch a W210 billion ($189 million) hybrid bond issue on 22 June.

A stock exchange filing shows that the SkyTeam carrier’s board approved the issuance on 21 June.

The unsecured bonds will have a 30 year maturity with an initial interest rate of 5.4%. After that, a 3.5% premium will be added, as well as an ‘adjustment rate’ based on the Treasury rate after two years, minus the rate at the start. After three years, an additional 0.5% margin will be added.

Korean Air will have the option to redeem the bonds on the two year anniversary of their issuance, and each year after that, or if there is a change in the airline’s controlling shareholder.

Source: Cirium Dashboard