Korean Air raising cash from government subsidy and land sales

Korean Air is looking to raise additional cash, seeking a government subsidy from the state-run Korea Development Bank and separately, from the sale of land in downtown Seoul. “We cannot confirm the exact figures as we are still in discussion with the relevant parties,” the airline said. The company says it has received a total of W1.2t ($1b) in government aid this year, in the form of asset-backed securities, perpetual bonds and an asset-backed loan from KDB and the Export-Import Bank of Korea (Exim Bank). Korean Air said in May that this comprised W700b in asset-backed securities, backed by air cargo operations; W300b worth of perpetual bonds embedded with stock conversion rights; and a W200b asset-backed loan. In the following months, the flag carrier raised over W1t from a new share issue in July, and in August, inked a W991b deal with local private equity fund Hahn & Company for its in-flight catering and duty-free business units.<br/>