Korean Air subsidiary debuts $300m bond

Hanjin International’s inaugural dollar floating rate note prices 20bp tighter than closest comparables as investors prep for a rising rate environment.
Hanjin International, the US-based subsidiary of Korean Air
Hanjin International, the US-based subsidiary of Korean Air

Hanjin International sold a $300 million three-year floating rate bond on Thursday, issuing it off the back of Korea Hydro’s recent offering and riding on the country’s safe haven status.

The Reg S-registered notes guaranteed by state-owned Korea Export-Import Bank priced 15bp to 20bp tighter than its closest comparables as investors were keen to hold instruments of the US-based subsidiary of Korean Air.

Floating rate notes are a small part of the fixed income world and are rare in Asia, although they are more common in the US. However, amid uncertainty over rising rates, more borrowers could wade into the floating rate space, say sources...

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