Lotte Card announced on the 27th that it has issued an ESG overseas asset-backed security (ABS) worth $300 million (approximately 431.1 billion won).
The ABS, issued based on credit card receivables as the underlying asset, saw participation from Japan's MUFG Bank as an investor. The average maturity is four years. The ABS issued this time is classified as a social bond and is intended to support financial assistance for low-income individuals.
Lotte Card explained that issuing at competitive interest rates compared to domestic corporate bonds reduces financial costs and eliminates risk factors related to exchange rate and interest rate fluctuations through currency and interest rate swaps.
A Lotte Card official noted, "Even amidst continued volatility in domestic and international financial markets, we were able to successfully issue this ABS," and added, "We will strive to promote shared growth and create value for coexistence through social bonds."