Asiana Airlines Closes US$370 Million Asset Backed Securities Deal
By algevis - Sun Mar 18, 6:18 pm
Asiana Airlines today successfully closed a US$370million Asset Backed Securities (ABS) deal. Standard Chartered Bank and The Korea Development Bank (KDB) were the Joint Lead Managers (JLMs) while KDB is the credit facility provider and Standard Chartered Bank Korea and KDB are the swap providers. This transaction represents the securitisation of passenger ticket sales predominately on Asiana’s Japan routes. The transaction has a maturity date of February 2017 and a floating rate coupon of 1-month USD LIBOR +300bps.
Chang Soo Han, Executive Vice President and CFO at Asiana Airlines, Inc, said, “Asiana is pleased to close the deal successfully, especially under the current market conditions. This is the first 5-year transaction backed by a Korean airline company’s passenger ticket sales in Japan since the first cross-border ABS of this kind was issued in 2000. We appreciate all the parties who participated in the deal, especially Standard Chartered Bank and The Korea Development Bank for their hard work and support.”
Warren Lee, Global Head of Capital Markets Solutions at Standard Chartered Bank commented, “The success of this transaction further reinforces the strong credit support of KDB, quality credit and robust transaction structure. We are pleased this transaction was able to achieve a very competitive pricing despite the continuing market uncertainties.”
Il-Soh Park, Head of Debt Capital Markets Dept at The Korea Development Bank added “The USD issuance for Asiana using their Yen receivables is the first offering of this type in Korea, and we are pleased to have participated in this successful transaction.”
Asiana Airlines, Inc was founded in 1988 by the Kumho Asiana Group. The establishment of Asiana was part of the Government’s policy to develop a second airline in Korea in order to meet the growing demand and to improve the quality of airline service by introducing competition in the aviation industry in Korea. As at the end of December 2011, Asiana had a fleet of 71 aircrafts, with passenger and cargo routes to 80 cities globally. Asiana has been active in the cross-border ABS market, having previously issued five ABS. This transaction represents the sixth cross-border ABS and the first USD-denominated ABS backed by the passenger ticket sales in Japan.