SEOUL: A bond deal by South Korea’s biggest airline showed that while carriers pummeled by the coronavirus pandemic can still sell debt, they will need to pay a steep price.
The fee Korean Air Lines Co paid underwriters to issue won notes jumped to a record 1.157%, four times what it was charged in a similar deal in September. And an unusually numerous 15 sales managers took part in the offering this week of 600 billion won (US$490mil) of debt backed by sales of future passenger tickets, as brokerages spread the risk of doing the deal around.
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