Lotte Construction said on the 3rd that it issued a total of 700 billion won in hybrid capital securities at the end of last year and in January.
According to Lotte Construction, the company issued 350 billion won in hybrid capital securities in the first tranche on Dec. 29 last year, followed by an additional issue of the same size in the second tranche on Jan. 29. With the two issuances, it will secure a total of 700 billion won in equity-like funds.
The issuance will improve Lotte Construction's liability ratio and financial indicators. Lotte Construction's capital aggregates will expand from the previous 2.8 trillion won to about 3.5 trillion won, and accordingly, on a consolidation basis, the liability ratio is expected to improve from 214% in the third quarter to the 170% range.
Separately from this hybrid capital securities issuance, it also raised about 600 billion won in additional funds in January through loans from financial institutions and 18-month commercial paper (CP), securing more than 1 trillion won in deposits.
A Lotte Construction official said, "Based on a stable financial structure, we plan to focus our business capabilities on excellent business sites such as Seongsu District 4."