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[Alpha Biz=(Chicago) Reporter Paul Lee] Asiana Airlines issued permanent convertible bonds (CB) with the support of Korean Air.
According to the investment banking (IB) industry on the 15th, Asiana Airlines issued CB worth 300 billion won at an annual interest rate of 4.7% on the 13th. It's 30 years due in November 2053.
This CB issuance is intended to respond to call options (early repayment rights). Asiana Airlines fully repaid its previous permanent CB with CB funds issued on the same day. The existing CB was issued in November 2020, with an annual surface interest rate of 7.2%. Interest rates have been reduced by 2.5 percentage points.
All of Asiana Airlines' CBs were bought by Korean Air. Korean Air is in the process of acquiring Asiana Airlines.
It is currently awaiting approval from the European Commission (EC), a European Union (EU) rival authority. If conditional approval fails, Asiana Airlines is in a position to repay all funds received from Korean Air.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
