For many of Asia"s securitizers, Korean Air Lines?(KAL’s) Yen 27 billion ($245 million) first international securitization was the highlight of a quiet year.

The transaction, backed by the airline’s yen receivables from its Japan-Korea routes, was truly multi-jurisdictional. Korean, Japanese, English, Irish and Cayman law governed the transaction documents, requiring the brainpower of nine law firms.

Lee & Ko helped KAL create a deal that achieved numerous market firsts: the world’s largest airline ticket securitization, the first airline ticket future flow deal to securitize Japanese yen receivables, the first securitization by a non-Japanese Asian originator to tap the yen market, the first time a Japanese trustee has accepted an entrustment of this type of future receivable, and the first airline deal to securitize International Air Transportation Association (IATA) receivables.

The first Japanese trust, Irish SPV and Cayman SPV structure was created to satisfy the Knotty Korean and Japanese legal and tax issues.

Because IATA is incorporated in Quebec, Canada, it was necessary to make certain public filings in Montreal to complete the perfection process. Blake Cassels & Graydon was local counsel.