Lotte Card's Strategic ESG ABS Issuance

On March 27, Lotte Card made headlines with the announcement of a $300 million ESG overseas asset-backed securities (ABS) issuance. This move underscores the company's commitment to social responsibility and strategic financial growth.

Details of the ESG ABS

The ABS, backed by credit card receivables, attracted MUFG Bank as an investor, featuring an average maturity of four years. Designed as a Social Bond, it aims to provide financial aid to low-income groups, offering a competitive interest rate that reduces financial costs. Risk management strategies, including currency and interest rate swaps, were employed to mitigate potential financial volatilities.

A History of ESG Commitment

Since its first issuance in 2021, Lotte Card has raised a cumulative $1.46 billion through ESG overseas ABS, dedicated to supporting underprivileged communities. The company's ESG Framework, certified by Sustainalytics, guides the utilization of these funds, reflecting a deep-rooted commitment to sustainable and inclusive growth.

Looking Ahead

Despite the volatile financial landscape, Lotte Card's robust credit sales and financial business have enabled this successful issuance. The company pledges to continue fostering shared growth and creating mutual value through its social bonds.