[Asia Economy Reporter Hyunseok Yoo] Lotte Tour Development has virtually completed large-scale financing for the stable operation of Jeju Dream Tower Complex Resort after four years.
On the 24th, Lotte Tour Development held a board meeting and announced that it decided to issue convertible bonds (CB) worth 80 billion KRW through a third-party allotment method.
The convertible bonds have a maturity of four years, a coupon rate of 0%, and a guaranteed yield of 4.5% at maturity. The conversion price is 18,231 KRW.
All investors are three entities: Dominus Investment invested 70 billion KRW, CCG Investment Asia invested 6 billion KRW, and CVA Asset Management invested 4 billion KRW. The payment date is the 29th of this month.
Kim Dongjun, IR Director of Lotte Tour Development, said, "With the success of this financing, sufficient funds have been secured for stable operation ahead of the phased return to normal life, which is expected to bring a large influx of domestic and foreign tourists," adding, "This result was possible because the growth potential of Jeju Dream Tower Complex Resort was highly evaluated."
Jeju Dream Tower Complex Resort, which opened on December 18 last year, involved a total project cost of 1.7 trillion KRW.
Starting with the issuance of 40 billion KRW convertible bonds in August 2017, domestic and foreign investors have participated in development funding through a 215.8 billion KRW paid-in capital increase in 2018, 71 billion KRW overseas convertible bonds in 2019, 200 billion KRW bridge loans and 700 billion KRW secured loans last year, and 94.3 billion KRW convertible bonds earlier this year.
Jeju Dream Tower Complex Resort is scheduled to open its second tower (Tower 1) with 850 rooms on the 29th, achieving full operation of 1,600 rooms, the largest scale for a single hotel in Korea.
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