Korean Air said Thursday that it will issue contingent convertibles, also known as CoCo bonds, worth some 300 million U.S. dollars. The bond's maturity is 30 years.

The issuance is viewed as an effort by Korean Air to better manage its increased debt ratio due to losses from the insolvent Hanjin Shipping Company, and to also expand its capital base and repay loans.

The airline is estimated to have suffered a loss of 820 billion won in the course of aiding the cash-strapped shipper. Around 500 billion won of this amount has been reflected as a loss through public filings, but the remainder of over 300 billion has yet to be factored into the airline's financial status. 

Korean Air has said that it is issuing the new bonds in order to procure operational funds such as for debt repayment.