EM ASIA CREDIT: Korean Air Lines: New aircraft orders
(KOREAN, Aa2/AA/NR)
"KOREAN AIR TO BUY 103 BOEING JETS AT US$36.2 BLN, GE ENGINES AT US$13.7 BLN – WHITE HOUSE" - BBG
New Boeing orders may drive USD issuance
Korean Air, which operates a fleet of 138 passenger and 23 cargo aircraft, will purchase 103 Boeing aircraft and related GE Aerospace engines. The deal is worth around USD50bn of orders for the US companies. The aircraft orders will no doubt take several years to fulfill, though pre-delivery payments (1-2% to secure a slot) will be material (c. USD1bn) and may signal additional USD bond issuance. Korean Air issued a USD300m 5Y note in September, guaranteed by the Korean Development Bank.
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