Korean Air Issues $300 Million Eurobond

Korean Air raised $300 million through a three-year Eurobond issuance guaranteed by KB Kookmin Bank, continuing the airline’s efforts to secure foreign-currency financing in international capital markets.

The fixed-rate bonds were priced at a spread of 57 basis points over comparable U.S. Treasuries, tightening from initial guidance of 90 basis points following strong investor demand in Asia and Europe. Moody’s assigned the bonds an Aa3 rating, reflecting KB Kookmin Bank’s guarantee.

The transaction follows Korean Air’s issuance of JPY20 billion in Samurai bonds in July, which was backed by the Export-Import Bank of Korea. The airline has increasingly used guarantees from Korean financial institutions to enhance the credit quality of its international bond offerings.