Lotte Construction Secures 1.5 Trillion Funding... Investment Agreement with Meritz Securities

All Funds from Lotte Chemical and Affiliates Fully Repaid

[Asia Economy Reporter Onyu Lim] Lotte Construction has successfully raised funds amounting to 1.5 trillion KRW.

On the 9th, Lotte Construction announced that it signed an investment agreement worth 1.5 trillion KRW with Meritz Securities at Lotte Hotel Seoul, located in Sogong-dong, Jung-gu, Seoul.

This investment was made targeting bonds such as ABCP (Asset-Backed Commercial Paper) guaranteed by Lotte Construction in the project financing (PF) business currently underway.

Lotte Construction explained, "This fund raising has significantly alleviated the liquidity crisis that recently emerged due to the simultaneous maturity of PF."

Previously, Lotte Construction had early repaid 300 billion KRW and 100 billion KRW borrowed from Lotte Fine Chemical and Lotte Homeshopping, respectively, and also fully repaid 500 billion KRW borrowed from Lotte Chemical as of the 6th.

A Lotte Construction official said, "Following the successful PF refinancing, full subscription of corporate bonds, and early repayment of loans from Lotte affiliates, this agreement with Meritz Securities has enabled us to secure a more stable financial structure."