Lotte Card Issues New USD 300 Million ESG Overseas ABS

[Financial News] Lotte Card announced on the 23rd that it has issued new environmental, social, and governance (ESG) overseas asset-backed securities (ABS) worth USD 300 million (approximately KRW 441.9 billion).
The overseas ABS, backed by credit card receivables, attracted investment from Societe Generale. The securities have an average maturity of three years. They were issued at an interest rate more competitive than domestic corporate bonds, helping reduce funding costs, and Lotte Card entered into currency and interest rate swap agreements to mitigate risks from exchange rate and interest rate fluctuations.
The newly issued ABS qualify as a Social Bond and will be used to provide financial support for low-income groups. This is Lotte Card's fifth ESG overseas ABS issuance since its first deal in 2021, bringing the cumulative total to USD 1.76 billion (approximately KRW 2.3088 trillion), which has been used for financial support for low-income borrowers and similar purposes.
A Lotte Card representative said, "By issuing overseas ABS, we have diversified our funding sources and strengthened our ability to respond to market volatility. Going forward, we plan to build a stable funding environment through various and continuous overseas financing," adding, "The funds raised will be used to provide financial support for low-income and vulnerable groups."

imne@fnnews.com Hong Ye-ji Reporter