Hanjin KAL Corp., the parent of South Korea’s flag carrier Korean Air Lines, has successfully sold 300 billion won ($249.5 million) in bonds with warrant in overwhelming response, raising expectations for strong support to the $800 million recapitalization scheme of the airliner under virus-led liquidity crisis.

Its BBB- three-year bonds with warrant worth 300 billion won drew 7.34 trillion won, making it oversubscribed by 24.45 times, the sale advisor Eugene Investment & Securities said Wednesday. It offered 23,779,196 shares at 82,500 won, discounted from the stock’s Wednesday closing of 86,500 won.

The yield to maturity was set at 3.75 percent, which is relatively high compared with other products, and the conversion price per share was set at the level lower than the current stock price, attracting retail investors wishing for handsome profit-taking later.

However, institutional investors reportedly remained reluctant to join the subscription due to the company’s low credit rating and relatively high stock price in comparison with the company’s fundamentals.

The three-way alliance led by Hanjin Group heiress Cho Hyun-ah challenging the management under her brother Cho Won-tae reportedly sought for the purchase, but the management not.

Eyes now are on whether any of the chief’s allies has purchased the bonds or not, a move that could affect the sibling feud over the control of the company.

Hanjin KAL earlier announced to join over $800 million recapitalization scheme of Korean Air Lines in need of immediate liquidity to stay afloat due to the devastation of the air travel business amid the COVID-19 pandemic.

Hanjin KAL shares on Thursday rose 0.23 percent to 86,700 won in the morning trade in Seoul.

By Han Woo-ram and Lee Ha-yeon

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