Standard Chartered (Hong Kong) Completes Korean Air’s JPY 40 billion Asset-Backed Securities

22 November 2010, Hong Kong – Standard Chartered (Hong Kong) Ltd. is pleased to announce that it has today completed Korean Air Lines Co’s (“Korean Air”) JPY 40 billion securitization transaction, the largest asset-backed security deal in Asia so far this year.

Standard Chartered HK was the Sole Lead Arranger for the deal, while Korea Finance Corp (KoFC) was the credit facility provider and Korea Development Bank was the interest rate swap provider.

The underlying transaction is backed by existing and future passenger ticket bookings on Korean Air flights between Japan and Korea, and a JPY 41.22 billion credit facility was provided by KoFC. The deal was priced at 1-month Yen LIBOR+0.95%.

Warren Lee, Global Head of Structured Financing Solutions at Standard Chartered commented that the transaction was very well received by investors given the quality of the receivables and robustness of the structure.

“Standard Chartered is pleased to play a lead role in Korean Air’s securitization transaction. The size and rarity of this landmark transaction reiterates our commitment to supporting our clients’ growth across our footprint,” Lee said.

“The sizeable deal suggests a comeback of investor appetite towards quality assets and well structured products. We expect more securitized transactions to come through in the foreseeable future amid strong demand from investors,” he added.