Korean Air Lines plans to raise capital by issuing new shares

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Korean Air Lines plans to raise capital by issuing new shares

Published: 06 Jan. 2015, 20:22

Korean Air Lines, the nation’s largest air carrier, said on Tuesday it plans to raise 500 billion won ($454 million) worth of capital by issuing new stocks.

The airline said it aims to use the incoming funds to pay debts and improve its financial health. The company said it plans to issue about 14.1 million new shares at 35,300 won per share.

The final price of each share will be determined on March 9 while the listing of the new shares will happen on April 1.

The issuance of new shares will mean that a total of 73.9 million KAL shares are traded on the market.

The Hanjin Group affiliate said that this capital increase will drop the company’s debt ratio by 200 percentage points while saving 20 billion won in costs being paid as interest. KAL’s debt ratio was more than 800 percent last year.