Korean Air has priced a $300 million three-year Reg S Eurobond backed by a guarantee from KB Kookmin Bank, tightening pricing to 57 basis points over the equivalent U.S. Treasury yield. The Seoul-based carrier’s latest international borrowing comes as it continues to tap offshore debt markets through a commercial-bank guarantee rather than the policy-bank structures used in earlier foreign-currency deals.
The spread was 33 basis points inside initial guidance, indicating firm investor demand for the issue. The structure differs from Korean Air’s previous dollar bonds, which carried guarantees from Korea Development Bank, and from a recent ¥20 billion Samurai bond supported by the Export-Import Bank of Korea. The new transaction adds another foreign-currency funding channel for the airline while keeping the tenor at three years and preserving access to international investors through a Reg S format.