Buoyed by expectations of its upcoming merger with Korean Air (KE, Seoul Incheon), the official plan for which won state approval on June 30, Asiana Airlines (OZ, Seoul Incheon) has managed to raise KRW110 billion won (USD97 million) by issuing privately placed corporate bonds, local media reported.

The measure was the company’s first issuance of bonds of worth more than KRW100 billion (USD88 million) since 2015.

“The market’s expectations for the M&A with Korean Air were the driving force behind the issuance of the private placement bonds,” Asiana acknowledged in a statement on June 25.

Financial sector sources told local media that Asiana Airlines had been expected to encounter difficulties in issuing the bonds, as commercial aviation has yet to recover from the Covid-19 crisis.

But the successful issuance reflected the market’s positive outlook on the merger with Korean Air, which is expected to conclude in 2024, along with forecasts for a recovery and strong cargo performance data.

The corporate bonds will be issued in three tranches, of KRW57 billion (USD50 million) with a one-year maturity, KRW23 billion (USD20 million) with an 18-month maturity, and KRW30 billion (USD27 million) with a maturity of two years.