Lotte Card Issues ESG Bonds Worth 150 Billion KRW

Korea Credit Rating Obtains Top Grade 'SB1' in 'ESG Financial Certification Evaluation'

[Asia Economy Reporter Ki Ha-young] Lotte Card announced on the 23rd that it has issued social bonds worth 150 billion KRW to support the finances of small and medium-sized merchants.

Social bonds are special purpose bonds issued to address social issues such as supporting socially vulnerable groups and creating jobs, and are a type of Environmental, Social, and Governance (ESG) bond. The funds raised will be used for early payment of card settlement funds to small and medium-sized merchants struggling due to the novel coronavirus disease (COVID-19).

For this ESG bond issuance, Lotte Card became the first private financial company to receive ESG financial certification evaluation from Korea Credit Rating. It received the highest grade, 'SB1', by achieving excellent results in project eligibility, fund allocation ratio, fund management, operational system, and transparency evaluation.

Underwritten by NH Investment & Securities and issued through a public offering, the total amount of the bonds is 150 billion KRW, consisting of 60 billion KRW with a maturity of 3 years and 3 months, 20 billion KRW with a maturity of 4 years, and 70 billion KRW with a maturity of 5 years.

Lotte Card stated, "After the acquisition by MBK Partners, we issued our first ESG bond as a social bond to help small and medium-sized merchants," adding, "Starting with this issuance, we will strive to create shared value through sustainable growth and mutual development."

This content was produced with the assistance of AI translation services.