Meritz Capital Raises Up to 220 Billion Won in Overseas Funding... "Industry's First Solo Achievement"

Sinopac and Taishin Banks from Taiwan, Transaction with Hong Kong Lending Syndicate
First in the Credit Finance Industry to Raise Overseas Funds with Only a Domestic Credit Rating
"Agreement Signed Without Group Guarantees... Credibility Improved"

Meritz Capital has raised up to $150 million (approximately 217 billion KRW) from Taiwanese Sinopac Bank, Taishin Bank, and a Hong Kong-based lending syndicate. This is the first case in the credit finance industry where Meritz Capital independently secured overseas funds without an international credit rating or group guarantees.

Kwon Tae-gil, CEO of Meritz Capital. Provided by Meritz Capital

On the 6th, Meritz Capital announced that it had signed a commitment agreement for a $150 million syndicated loan with Sinopac Bank, Taishin Bank, and the Hong Kong-based lending syndicate.

Meritz Capital plans to draw $100 million (approximately 144.5 billion KRW) within three months from the agreement date. It can increase the amount by up to $50 million (approximately 72.5 billion KRW) within six months. The loan period is three years from the initial drawdown.

The company explained that this is the first case in the industry where overseas funds were raised based on a domestic credit rating (as of last month, NICE Credit Rating and Korea Credit Rating 'A+/Stable') without an international credit rating. The funding interest rate is at the level of domestic corporate bond issuance rates.

Meritz Capital emphasized that it succeeded in diversifying its funding sources amid growing financial market uncertainties. It expects this transaction to have a positive impact on expanding both domestic and overseas funding and on domestic credit ratings. It also anticipates that it will serve as a positive signal to institutional investors in the bond market.

A Meritz Capital official said, "As the first case in the industry to successfully secure overseas funding independently without an international credit rating or group guarantees, this will contribute to improving the stability and credibility of the group and Meritz Capital. We will continue to strengthen risk management and strive to discover diverse revenue sources."

This funding was solely underwritten by Korea Investment & Securities.