Heungkuk Asset raises $114 mn to invest in senior debt of Emirates Airline’s aircraft

Heungkuk Asset Management Co. Ltd. , a unit of South Korea’s textile, financial services and media group, closed a 130 billion won ($114 million) fund on April 20 to invest in senior debts secured on a Boeing 777-300ER for Emirates Airline, according to local media reports.

The aviation fund will pay back the principal investment in installments evenly, cutting the redemption period, compared with other aviation funds which generally repay the principal in a lump sum, the Seoul Economic Daily said on April 21, citing Heungkuk Asset.

No further details were reported on the total amount raised for the airplane financing, or investors in the domestic fund.

Since entering the aviation financing market in 2014, Heungkuk has been focusing on senior secured debts. The outstanding value of its aviation funds is 670 billion won currently.

Heungkuk belongs to Taekwang Group which owns life and non-life insurers, a brokerage unit and savings banks.

The 777-300ER is the most favored aircraft model by South Korean institutional investors because of high demand in the used airplane market.

A number of South Korean brokerage firms have recently underwritten financing for Boeing 777-300ER aircraft for Emirates Airline, Air France and Qatar Airways.