Lotte Card has diversified its funding channels by issuing overseas asset-backed securities (ABS).
The company announced on September 18 that it has issued $300 million (approximately 404.1 billion won) in overseas ABS.
This ABS is backed by credit card receivables. Mitsubishi UFJ Financial Group (MUFG) and Société Générale participated as investors, with an average maturity of 3.5 years.
Lotte Card explained that it issued the ABS at competitive interest rates compared to domestic corporate bonds, thereby reducing its funding costs. It also entered into currency and interest rate swap agreements to mitigate risks associated with exchange rate and interest rate fluctuations.
A Lotte Card official stated, "We successfully issued overseas ABS by securing investor confidence based on stable underlying assets and financial management capabilities. We will continue to diversify our funding channels and improve our medium- to long-term profitability and financial structure through proactive risk management."
* This article has been translated by AI.
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