Lotte Construction Raises 2.3 Trillion Won... Reduces PF Contingent Liabilities

Lotte Construction announced on the 7th that it has secured 2.3 trillion KRW in funding from financial institutions. Lotte Construction stated, "Since last year, we have been steadily reducing project financing (PF) contingent liabilities, thereby securing stable liquidity."

On the 6th, Lotte Construction completed the disbursement of a long-term fund worth 2.3 trillion KRW involving five banks?Shinhan Bank, KB Kookmin Bank, Woori Bank, Hana Bank, and Korea Development Bank?three securities firms?Kiwoom Securities, KB Securities, and Daishin Securities?and Lotte Group companies. Disbursement refers to the execution of the loan and the payment of the loan amount.

Through this, Lotte Construction fully repaid the 1.5 trillion KRW raised from Meritz Financial Group last year, and plans to resolve PF contingent liabilities of 2 trillion KRW by converting and repaying the main PF by the end of this year.

Lotte Construction reduced its debt ratio by approximately 31% as of the end of 2023 compared to the end of 2022. It is strengthening financial stability by reducing borrowings by 1 trillion KRW and lowering its borrowing dependency by about 9%.

Additionally, on the same day, Lotte Construction secured an additional 500 billion KRW in long-term funds through a new agreement with Meritz Financial Group. This brings the total funds raised to 2.8 trillion KRW, further enhancing financial stability.

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