Lotte Card Issues $300 Million ESG Overseas ABS

A cumulative $1.46 billion raised
Financial support for low-income groups

Lotte Card announced on the 27th that it has issued $300 million (approximately 431.1 billion KRW) worth of Environmental, Social, and Governance (ESG) overseas asset-backed securities (ABS).

The ABS was issued based on credit card receivables as the underlying assets. Japan's MUFG Bank participated as an investor. The average maturity is 4 years.

The ABS issued this time is a social bond. It will be used to support financial aid for low-income groups.

Lotte Card stated that it issued the bonds at a competitive interest rate compared to domestic corporate bond issuance, thereby reducing financial costs.

They also said that currency and interest rate swaps were used to eliminate risk factors arising from exchange rate and interest rate fluctuations.

A Lotte Card official said, "Despite the ongoing volatility in domestic and international financial markets, we successfully issued the ABS," adding, "We will strive to promote mutual growth and create shared value through social bonds."

This is the fourth ESG overseas ABS issued by Lotte Card. Since the first issuance in 2021, they have raised a cumulative total of $1.46 billion (approximately 1.8829 trillion KRW), which has been used for financial support for low-income groups and other purposes.