이 기사는 2021년 12월 13일 08:05 thebell 에 표출된 기사입니다.

Korean Air Lines is preparing to issue a Samurai bond, guaranteed by the Export-Import Bank of Korea (KEXIM), early next year amid ongoing trade conflicts between Korea and Japan.

Korean Air has hired a foreign advisory firm to raise 30 billion yen in a Samurai bond issuance next year, with a book building process expected to take place in January 2022.

The company plans to tap the Japanese bond market to refinance existing debt as its 30 billion yen Samurai bond will mature in February 2022.

Korean Air plans to enhance its credit rating by KEXIM’s guarantee. KEXIM provided a guarantee when the airliner sold its maiden three-year Samurai bond in February 2019. It is difficult to raise funds without securing an investment grade in the conservative Japanese market. Back then, Korean Air improved its credit rating, using KEXIM’s credit rating of AA.

The Samurai bond issuance by South Korean companies has been halted since KT Corp sold its Samurai bond in 2019 due to worsening trade conflicts between Korea and Japan.

Market insiders are paying attention whether Korean Air will be able to raise funds through its planned bond sale amid ongoing conflicts between the two countries. Lotte Corp recently sold a three-year Samurai bond worth 8.5 billion yen through a private placement.

Korean Air has tried to raise funds through foreign currency-denominated bonds since last year, which all ended unsuccessfully. (Reporting by Hye-rim Pi)