Korean Air plans to issue Environmental, Social, and Governance bonds (or “ESG” bonds) in order to raise funds for the modernization of its fleet. In particular, the airline plans to acquire some new Boeing 787 Dreamliners.
“ESG bonds issued by Korean Air are green bonds, and raised funds will be used to purchase next-generation, eco-friendly Boeing 787 aircraft,” the company wrote in a statement.
The bonds announced by the national carrier of South Korea will have maturities of 1.5 years, 2 years, and 3 years, and will amount to approximately 200 billion KRW (€148.3 million).
Currently, Korean Air operates a total of 10 Boeing 787-9s with as many to be delivered, while 20 787-10s on order will enter service from 2022. Besides the Dreamliners, the air carrier has 153 other aircraft, including narrow-bodies Airbus A220 and Boeing 737, wide-bodies A330, A380, Boeing 747, and Boeing 777 as well as five Eurocopter EC135 helicopters.