April 28, 2024
Market Now
Lotte E&C reduces liabilities by securing $1.7 billion
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(Lotte Property & Development) |
South Korean embattled builder Lotte E&C announced Thursday that it has successfully completed a 2.3 trillion won ($1.7 billion) real estate project financing (PF) fund, which was raised in collaboration with commercial banks and other financial institutions.
This financing was fully funded, along with an additional 500 billion won secured by the company, which has suffered from liquidity crisis.
The long-term fund of 2.3 trillion won, established last month with the participation of five banks - Shinhan Bank, KB Bank, Woori Bank, Hana Bank, and Industrial Bank of Korea - as well as three securities firms - Kiwoom Securities, KB Securities, and Daeshin Securities - along with Lotte Group companies, was finalized on March 6, according to a press release from Lotte E&C.
With these funds, Lotte E&C successfully repaid the entire 1.5 trillion won borrowed from Meritz Financial Group, aimed at reducing financial burdens attributed to high interest rates.
Furthermore, the company intends to eliminate 2 trillion won in PF contingent liabilities by converting and repaying the PF by the end of this year, as stated by the company.
In a related development, Lotte E&C disclosed that it secured an additional 500 billion won through a new long-term funding agreement with Meritz Financial Group. This additional funding raises the total secured by Lotte E&C to 2.8 trillion won.
Lotte E&C expressed confidence that the acquisition of stable liquidity will effectively address any concerns regarding contingent liabilities raised by the market.
By Investor News (investor@heraldcorp.com)
