Cases & Deals

Standard Chartered Bank, Daiwa Capital Markets, and Korean Development Bank act as joint lead arrangers in cross-border securitization of $350 million of Korean Air Lines' U.S. passenger ticket receivables

Client(s) Standard Chartered Bank, Daiwa Capital Markets, Korea Development Bank, and Citicorp International Limited

Jones Day acted as legal and tax transaction counsel, representing Standard Chartered Bank, Daiwa Capital Markets, and The Korean Development Bank as joint lead arrangers and Citicorp International Limited as note trustee, in a cross-border securitization of Korean Air Lines' U.S. sourced passenger ticket receivables.

In this highly complex cross-border securitization, the securitized assets were receivables generated by Korean Air from the sale of airline tickets to passengers travelling on the airline from the United States. The transaction involved multiple special-purpose vehicles in Delaware, Korea, and the Cayman Islands and legal and tax opinions from several jurisdictions. Jones Day provided legal and tax advice under English, New York, and U.S. laws. As transaction counsel to the deal, the Jones Day team created a novel legal structure which has not been used on Korean asset-backed securitizations before and which, for U.S. and Korean legal, tax and regulatory reasons, will provide the template for future U.S. receivables securitizations for Korean companies.

Founded in 1969, Korean Air has grown to become a leader in the global transportation industry. Headquartered in Seoul, Korean Air operates in 45 countries with 125 destinations around the world.