Hanjin Kal to Issue 300 Billion KRW BW... "Funding for Korean Air Rights Offering Participation"

[Asia Economy Reporter Won Dara] Hanjin KAL announced on the 1st that it will issue 300 billion KRW of bonds with warrants (BW) through a public offering to raise funds for participating in Korean Air's rights offering.

The company explained, "We plan to use 200 billion KRW for acquiring securities of other corporations and 100 billion KRW for debt repayment," adding, "The purpose is to raise the necessary funds for Korean Air's planned rights offering."

Regarding the choice of the public offering method, the company stated, "The public offering method, which allows subscription procedures for shareholders and the general public to be conducted simultaneously, enables an increase in subscription rates and a shortening of the schedule, making it more advantageous for meeting Korean Air's rights offering payment schedule."

A Hanjin KAL official said, "Based on this bond with warrants issuance, we expect to timely secure funds for Korean Air's rights offering, while also improving Hanjin KAL's borrowing structure and anticipating future capital expansion effects."