Milbank LLP has successfully advised Korean Air Lines Co., Ltd. (“KAL”) in connection with its financings of four new Boeing 737-8 aircraft supported by Export-Import Bank of the United States (“EXIM Bank”). KAL is the flag carrier of and the largest airline in South Korea based on fleet size, international destinations and international flights; and one of the most iconic airlines in Asia. The financings were provided by various financial institutions including ING Capital and The Toronto-Dominion Bank which was in each case backed by a 10-year guarantee by EXIM Bank.
The transaction marks the return of EXIM Bank-backed financings for KAL after almost half a decade hiatus. It is one of only a handful of export credit-supported financings commenced during the pandemic in Asia.
The Singapore and Korea-based Milbank teams were led by Global Transportation and Space partner Paul Ng and special counsel Brian Youn with associate Hui Ling Teo. Additional support was provided by partner Freyda Mechlowicz in New York. Partner Andrew Walker provided advice on tax matters and partner Dara Panahy, special counsel Bijan Ganji and associate Pinky Mehta provided advice on certain US regulatory issues.
“Milbank is thrilled to support KAL on this important, EXIM Bank-backed financing. Following the disruption caused by the COVID-19 pandemic, KAL’s decision to take on this financing represents a clear sign of KAL’s confidence in the revitalization of travel demand in North Asia and the wider Asia Pacific region,” said Mr. Ng.
