Kiwoom Securities, Lotte Capital 418-2 Bond Sale

Sold at an annual pre-tax rate of 5.10%

Kiwoom Securities announced on the 16th that it will sell Lotte Capital 418-2 bonds at a pre-tax annual interest rate of 5.10%.

The maturity date is August 5, 2026, and if Lotte Capital does not default or go bankrupt within the next approximately 2 years and 3 months, investors will earn returns.

Lotte Capital is a credit-specialized financial company within the Lotte Group, operating a diverse business portfolio including household, corporate, and automobile financing. Korea Ratings assessed that although Lotte Capital’s profitability and asset soundness have deteriorated, its market position is excellent and the loan risk related to real estate project financing (PF) is relatively low. Accordingly, at the end of April, Korea Ratings assigned a credit rating of 'A+' to Lotte Capital bonds.

When purchasing Lotte Capital 418-2 bonds over-the-counter through Kiwoom Securities, the pre-tax yield as of the 14th is 5.10% per annum. The after-tax yield is 4.89% per annum. Since the Lotte Capital 418-2 bonds were issued in 2021 when interest rates were lower, with a coupon rate of 2.184% per annum, interest payments are made at 2.184% annually, and taxes are applied only to this portion.

Over-the-counter bonds are bonds directly held by securities firms that are divided into smaller units and sold to customers. This is why prices differ among securities firms even for the same bond product. At Kiwoom Securities, as of the 14th, you can purchase Lotte Capital 418-2 bonds with a face value of 10,000 KRW for 9,395 KRW. Interest payments are made every three months.

The bonds can be purchased via Kiwoom Securities’ mobile stock trading application, starting from a face value of 1,000 KRW. Kiwoom Securities currently sells over 20 types of bonds over-the-counter, including not only Lotte Capital bonds but also other corporate bonds and government bonds.

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