Lotte E&C Successfully Issues Additional 300 Billion Won in ABS Backed by Construction Receivables

Lotte E&C has successfully issued Asset-Backed Securities (ABS) again, following its previous issuance in May.

Lotte E&C announced that it issued 300 billion won in ABS with an AAA credit rating, utilizing construction receivables from residential project sites nearing completion and construction projects for group affiliates.

Of the 300 billion won in securities issued, 150 billion won has a one-year maturity, while the remaining 150 billion won has a maturity of one year and three months. KB Securities, Hana Securities, Kiwoom Securities, Samsung Securities, and Korea Investment & Securities participated in the underwriting group.

This marks the second issuance for Lotte E&C, which also successfully issued 300 billion won in ABS backed by construction receivables in May.

Lotte E&C expects that this ABS issuance will help improve its cash flow structure by converting construction receivables into cash early to cover construction expenses.

Previously, through the conversion of Project Financing (PF) for sites such as Gwangju Ssangnyeong Park and the Homeplus Bucheon Sangdong and Dongdaemun branches, Lotte E&C reduced its contingent liabilities to the 2.4 trillion won range as of the end of June. The company expects to further reduce these liabilities to the 2.2 trillion won level by the end of this year.

(Photo courtesy of Lotte E&C, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.