Homeplus Completes 1.3 Trillion Won Refinancing

On this day, the first withdrawal of 1 trillion won... Used for loan repayment and investment

Homeplus announced on the 31st that it has signed a refinancing agreement with its lenders and will proceed with the withdrawal of 1.3 trillion KRW in funds.

In April, Homeplus agreed to a refinancing contract worth a total of 1.3 trillion KRW with a consortium of three companies?Meritz Securities, Meritz Fire & Marine Insurance, and Meritz Capital?under a three-year maturity condition, and officially signed the contract on the 22nd.

Regarding the refinancing interest rate, Homeplus stated that despite the recent tightening of the financial market due to the real estate project financing (PF) crisis, the contract was signed under favorable conditions. This refinancing will further expand Homeplus's financial management flexibility.

According to the refinancing agreement, Homeplus plans to withdraw 1 trillion KRW in the first phase today and withdraw the remaining 300 billion KRW on the 10th of next month. The funds will be used to repay acquisition financing balances, lease deposit securitization bonds, and Meritz subordinated loans, with the remaining amount allocated as working capital for investments aimed at strengthening competitiveness, such as the conversion of ‘Homeplus Mega Food Market’.

Through this refinancing, Homeplus is expected to significantly improve its financial stability by repaying approximately 1 trillion KRW in current liabilities. Additionally, asset revaluation is scheduled for the first half of this year, and once the revaluation, expected to be around 1 trillion KRW, is completed, the financial structure, including the debt ratio, is also anticipated to improve.