Lotte Card Issues ESG Bonds Worth 200 Billion KRW

Used for Early Payment of Card Settlement Funds to Small and Medium Franchise Stores

[Asia Economy Reporter Ki Ha-young] Lotte Card announced on the 10th that it has issued ESG (Environmental, Social, and Governance) bonds worth 200 billion KRW to support small and medium-sized merchants.

This issuance is the third following last year's 150 billion KRW ESG bond issuance and the $450 million (approximately 504 billion KRW) ESG overseas asset-backed securities (ABS) issuance in May. With this, Lotte Card's cumulative ESG bond issuance amount has increased to 854 billion KRW.

The ESG bonds were issued in the form of social bonds aimed at solving social issues such as supporting socially vulnerable groups and creating jobs. The funds raised will be used for early payment of card settlement funds to small and medium-sized merchants struggling due to COVID-19.

Underwritten by KB Securities and issued through a public offering, the bonds total 200 billion KRW, consisting of 130 billion KRW with a 3-year maturity, 30 billion KRW with a 3-year and 2-month maturity, and 40 billion KRW with a 5-year maturity.

For this ESG bond issuance, Lotte Card received an ESG financial certification evaluation from Korea Credit Rating. It achieved excellent results in project eligibility, fund allocation ratio, fund management, operational system, and transparency evaluation, receiving the highest grade of 'SB1'.

A Lotte Card official stated, "Since the acquisition by MBK Partners, we have continuously issued ESG bonds aimed at supporting socially vulnerable groups and small business owners. We will diversify funding methods and forms to secure liquidity and enhance financial stability while fulfilling the company's social responsibilities."

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