Korean Air Shakes Off Political Crisis With Sale of Yen Bonds
- Guarantee by state-backed lender helped keep down spread
- Some investors refrained from buying bonds, underwriter says
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Korean Air Lines Co. priced Samurai bonds with less of a yield premium than similar yen notes, helped by a guarantee from a state-backed lender even as the nation is hit by a political crisis.
The Seoul-based carrier sold ¥30 billion ($193 million) of three-year bonds on Friday at 40 basis points over mid-swaps, according to people with knowledge of the matter. That’s less than the average of 65 basis points for Samurai bonds with similar tenors sold since the start of 2024, including 58 basis points for French bank BPCE SA, according to Bloomberg-compiled data covering bonds that list the spread at issue.