Incheon Airport Corporation Issues $300 Million Overseas Bonds, Reduces Interest Expenses by 2.8 Billion Won

Refinancing Bonds Issued During the COVID-19 Pandemic

Incheon International Airport Corporation has successfully secured large-scale funding in the global financial market, earning recognition for its excellent credit rating. As a result, the company expects to save approximately 2.8 billion won in interest expenses.

Panoramic view of Incheon Airport. Incheon International Airport Corporation

The corporation announced on May 8 that it had successfully issued foreign currency bonds worth 300 million dollars (about 440 billion won) in the global financial market.

This overseas bond issuance was conducted to refinance foreign currency bonds issued in 2021 during the COVID-19 pandemic, which have now reached maturity. Refinancing refers to the issuance of new bonds to repay maturing bonds.

In April 2021, amid deteriorating financial conditions caused by COVID-19, the corporation issued its first-ever overseas bonds worth 300 million dollars since its founding. The goal was to pursue core projects aimed at strengthening future competitiveness—such as Phase 4 construction, overseas business, and the development of surrounding areas—without government funding.

The lead managers for this bond issuance were Citigroup, J.P. Morgan, and BNP Paribas. Investor demand reached 5 billion dollars, about 16 times the original target of 300 million dollars, drawing significant attention from the market.

This strong interest is attributed to the corporation's outstanding international reputation, which is on par with Korea's sovereign credit rating (S&P AA, Moody's Aa2), as well as its solid financial structure.

The final won swap interest rate for this bond was 3.49%, which is 0.21 percentage points lower than the 3.70% domestic public bond funding rate for the same maturity. As a result, the corporation expects to reduce interest expenses by about 2.8 billion won.

Shin Gakyun, Head of Management Division at Incheon International Airport Corporation, stated, "Despite global economic uncertainties, we successfully issued overseas bonds based on the corporation's excellent international reputation, leading to reduced interest expenses. Moving forward, we will continue to strengthen the corporation's financial soundness through efficient fundraising, while consistently investing in facility safety to enhance the quality of airport services for the public and improve Incheon Airport's competitiveness."

This content was produced with the assistance of AI translation services.