Asiana, partner of Korean Air, Incheon’s smart cargo hub

South Korean firm Asiana secures $ 97 million bond issue ahead of merger

05.07.2021 – 06:50 UTC

High on expectations of its upcoming merger with Korean Air (KE, Seoul Incheon), whose official plan was approved by the state on June 30, Asiana Airlines (OZ, Seoul Incheon) managed to raise 110 billion won (97 million) by issuing corporate bonds, local media reported.

The move was the company’s first bond issue worth over KRW 100 billion ($ 88 million) since 2015.

“Market expectations regarding the merger and acquisition with Korean Air were the driving force behind the issuance of the private placement bonds,” Asiana said in a June 25 statement.

Financial industry sources told local media that Asiana Airlines was facing difficulties issuing the bonds as commercial aviation has yet to recover from the Covid-19 crisis.

But the show’s success reflects the positive market outlook for the Korean Air merger, which is expected to close in 2024, as well as recovery expectations and strong cargo performance data.

The corporate bonds will be issued in three tranches, amounting to KRW57 billion …

Asiana-Korean Air merger plan gets state seal of approval

02.07.2021 – 08:06 UTC

The state-run Korea Development Bank has approved a plan prepared by Korean Air (KE, Seoul Incheon) for the integration of long-time rival Asiana Airlines (OZ, Seoul Incheon), the airline national revealed in a statement on June 30.

After performing a due diligence, Korean Air turned over the post-merger integration plan to the Policy Development Bank on March 17. As previously reported, its parent company Hanjin KAL Corporation agreed to buy Asiana in November for 1.8 trillion won (US $ 1.59 billion). through the acquisition of new shares and perpetual convertible bonds.

The bank spent three and a half months reviewing and revising the plan in consultation with Hanjin, the Ministry of Land, Infrastructure and Transport and other relevant agencies.

The merger plan also includes a plan to integrate the low-cost subsidiaries of Air Busan, Air Seoul and Jin Air, although no specific details have been disclosed, as well as measures to maintain levels of employment and increase efficiency in certain areas of business support. The integrated airline will also increase …

Korean Air to launch “green” bonds to finance purchase of B787

28.06.2021 – 08:12 UTC

Korean Air (KE, Seoul Incheon) to issue “green” bonds as part of its 200 billion won (US $ 176 million) corporate bond issue to become the country’s first carrier to launch the so – saying environment, social and governance (ESG) obligations.

According to a stock market disclosure, the carrier plans to conduct a book-building process to assess demand for its corporate bond issue slated for later this month and could increase the size of the bond issue if the demand is high. A portion of the bonds would be issued in the form of ESG bonds, a type of sustainable debt offering aimed at financing the activities of companies as part of environmentally friendly and sustainable projects.

The proceeds will be used to purchase more environmentally friendly aircraft such as the B787-9, and possibly the B787-10, built using carbon composite materials and advanced aluminum alloys, increasing thus energy efficiency and emitting less greenhouse gases.

According to advanced ch-aviation fleets module, the airline currently operates ten B787-9s with pre-existing plans to add more fuel-efficient Dreamliners.

It is recalled that during the …

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