Korean Air Secures USD300M Eurobond Guarantee from Korea Development Bank
What happened
Korean Air priced a USD300 million five-year Eurobond, which is guaranteed by Korea Development Bank. The bonds were priced to yield 0.65 percentage points more than comparable US government bonds, improving from an initial proposal of 0.9 percentage points. This issuance follows a separate USD300 million three-year Eurobond guaranteed by KB Kookmin Bank in August 2026.
From ch-aviation.com
Why it matters
The issuance provides Korean Air with significant capital financing. The guarantees from Korea Development Bank and KB Kookmin Bank support the airline's ability to secure large-scale debt funding. The successful pricing, driven by strong investor demand, suggests favorable market conditions for the airline's debt.
From ch-aviation.com
Who's involved
- Korean AirAirline seeking debt financing through Eurobond issuance
- Korea Development BankState-owned bank providing financial guarantees for the Eurobond
- KB Kookmin BankBank that provided a guarantee for a previous Eurobond issuance
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The entities involved
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Korean Air
flag-carrier airline of South Korea
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Korea Development Bank
South Korean state-owned enterprise
Nothing else this week.
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KB Kookmin Bank
South Korean banking company