After a two-year absence, Korean Air, the airline subsidiary of the Hanjin Shipping Group, will next month return to the domestic bond market with a W200 billion ($155.8 million) transaction via LG Investment Securities and Bookok Securities.
An official at Korean Air explained that the company was going back to the market, primarily with the intention of clearing some of its debts - recently estimated at $2.7 billion - but also to fund expansion to services. “Yes, we do want to pay off some of our loans, but this will also help with the pre-payments for new aircraft,” he says.
The official hinted that the company may return to the domestic market later this year, but was not specific as to when this was planned.
