Lotte Card Issues New $300 Million Overseas ESG ABS

"Issued at Lower Interest Rates Than Domestic Corporate Bonds"
Fifth Overseas ESG ABS Issuance... Raised $1.76 Billion

Lotte Card announced on January 23 that it has issued a new overseas ESG (Environmental, Social, and Governance) ABS (Asset-Backed Securities) worth 300 million dollars (approximately 441.9 billion won).

The overseas ABS, backed by credit card receivables, was issued with Societe Generale participating as an investor. The average maturity is three years.

The securities were issued at a competitive interest rate compared to domestic corporate bonds, thereby reducing financial costs. To mitigate risks arising from exchange rate and interest rate fluctuations, currency and interest rate swap agreements were signed.

The ABS issued this time is classified as a social bond and will be used to provide financial support for low-income groups.

This marks the fifth overseas ESG ABS issued by Lotte Card. Since its first issuance in 2021, the company has raised 1.76 billion dollars (approximately 2.3088 trillion won) to support financial assistance for low-income groups and similar initiatives.

A Lotte Card representative stated, "By issuing overseas ABS, we have diversified our funding sources and strengthened our ability to respond to market volatility," adding, "We will continue to establish a stable funding environment through various and ongoing overseas fundraising efforts in the future."

The representative also added, "The funds raised will be used to provide financial support for low-income and vulnerable groups."