Lotte Card Issues $450 Million ESG Overseas ABS

Second ESG Bond Issuance Following November Last Year

[Asia Economy Reporter Ki Ha-young] Lotte Card announced on the 17th that it has issued $450 million worth of overseas asset-backed securities (ABS) as a 'social bond,' one of the ESG (Environmental, Social, and Governance) bonds.

Social bonds are a type of ESG bond issued for solving social issues such as supporting socially vulnerable groups and creating jobs. This issuance is the second following the ESG bond issued last November to support small and medium-sized franchise owners. The funds raised will be used to provide financial services to low-income groups struggling due to COVID-19.

The average maturity is three years, and investors include BNP Paribas, Soci?t? G?n?rale, and DBS Bank. For this issuance, Lotte Card received eligibility certification for the 'ESG Framework' from the overseas ESG certification agency Sustainalytics.

A Lotte Card official said, "As investor interest in ESG bonds is increasing in domestic and international financial markets, we succeeded in issuing at a low interest rate comparable to the 3-year government bond rate," adding, "We plan to continue active ESG management activities by securing various investors through domestic and overseas ESG bond issuances."

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