Korean Air raises $123m through Samurai bond

Korean Air has issued 20 billion yen ($123.4 million) in Samurai bonds with support from the Export-Import Bank of Korea, underscoring its credibility among global investors and confidence in its growth outlook.

A Samurai bond is a yen-denominated bond issued in Japan by a foreign company.

The issuance was completed despite external uncertainties, including high oil prices and foreign exchange volatility. Investors gave high marks to Korean Air’s stable profitability, backed by its balanced passenger and cargo portfolio.

Expectations for its upcoming merger with Asiana Airlines also helped fuel demand, as the deal is expected to expand Korean Air’s global network and strengthen its market position.

Separately, Korean Air has secured government financing for next-generation aircraft.

Eximbank will provide 300 billion won in export financing and 400 billion won through its supply chain stabilization fund, a policy finance program designed to support core industries tied to national economic security.

Last year, Korean Air announced plans to invest $36.2 billion to add 103 Boeing aircraft to its fleet by 2030. The order includes 20 Boeing 777-9s, 25 787-10s, 50 737-10s and eight 777-8F freighters, with deliveries scheduled to continue through the late 2030s.

The new aircraft are expected to support the airline’s carbon neutrality goals through improved fuel efficiency and lower emissions. They are also equipped with advanced technologies designed to enhance safety and maintenance efficiency.

“The Samurai bond issuance demonstrates the credibility Korean Air has secured among global investors regarding its future growth potential,” a Korean Air official said. “By introducing next-generation aircraft and modernizing our fleet, we will improve customer service and enhance operational efficiency.”