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Korean Air Sees Strong Demand for Corporate Bonds, Oversubscribed by Over Twofold
Transportation · Airlines · yonhap_finance · 2026-09-08
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Korean Air successfully attracted 463 billion won in orders for its 200 billion won corporate bond offering, signaling strong investor confidence.
What Happened
Demand Overview: Korean Air's recent book-building process for 200 billion won in unsecured corporate bonds attracted 463 billion won in total orders. Both the 2-year and 3-year tranches saw significant oversubscription, reflecting robust market appetite for the airline's debt.
Pricing Advantage: The bonds were priced at a spread lower than the individual benchmark yields for both maturities, highlighting Korean Air's strong credit standing and favorable market reception. The company had initially set a target range of ±30bp relative to the benchmark.
Upsizing Potential: Given the strong demand, Korean Air is considering increasing the total issuance size up to 350 billion won. The final issuance volume and the definitive spread will be determined based on the final results of the book-building process.
Use of Proceeds: The company plans to utilize the entire proceeds from this issuance to repay existing debt obligations. Seven major brokerage firms, including NH Investment & Securities, are acting as lead underwriters for the transaction.