Jeju Air will raise 100 billion won, or about $73.1 million, through a hybrid capital loan to support financial stability at the South Korean low-cost carrier. The financing includes 10 billion won for working capital and 90 billion won for debt repayment, with the transaction structured as a private placement to Korea Investment & Securities, which is also the lead manager.
The coupon is set at 7.5%, and subscription and funding are both scheduled for 23 September. The instrument carries a 30-year tenor to 23 September 2056, with Jeju Air able to extend it by another 30 years at its discretion. Interest payments can also be deferred by the airline if needed.
Jeju Air can call the loan early after 18 months, while lenders have no right to force repayment before maturity. The structure appears aimed at strengthening the airline’s balance sheet and improving liquidity rather than funding expansion.