Lotte Card Issues $400 Million Overseas ABS

[Asia Economy Reporter Ki Ha-young] Lotte Card issued $400 million (approximately 443 billion KRW) worth of overseas asset-backed securities (ABS) on the 4th.

This ABS, issued based on credit card sales receivables, saw participation from Mizuho, a Japanese bank, as the sole investor. The average maturity is three years. The funds raised will be used to repay existing borrowings and for operations, and currency and interest rate swaps were employed to eliminate risks arising from exchange rate and interest rate fluctuations.

A Lotte Card official stated, “Despite increased uncertainty due to the prolonged COVID-19 pandemic, we successfully issued overseas ABS under favorable conditions compared to domestic funding, thanks to the high asset soundness and financial stability maintained after MBK Partners’ acquisition.” He added, “We will continue to strive for stable liquidity through diversification of funding methods and efforts to reduce funding costs.”

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