Lotte Rental raises $90M in foreign currency bonds to fund core growth
What's the deal? Lotte RentalDealroom has a profile for this one. Try Dealroom → has raised $90 million (about 140 billion won) through a foreign currency bond issuance to fuel its core business.
The company issued a three-year floating rate note (FRN) on June 30, announcing the move days later.
Why now? Lotte Rental secured the funding at an interest rate up to 40 basis points lower than won-denominated bonds.
It expects that to save roughly $360,000 (about 600 million won) in annual interest costs.
The company raised the funds solely on its own credit rating, without payment guarantees from banks or affiliates. It holds a Baa3 rating from MoodyDealroom has a profile for this one. Try Dealroom →'s and BBB- from FitchDealroom has a profile for this one. Try Dealroom →, both with a stable outlook.
What could go wrong? Foreign currency debt carries exchange-rate risk, and the FRN's floating rate leaves Lotte Rental exposed to shifts in benchmark rates over the three-year term.
The signal: As a mature company, Lotte Rental is leaning on its standalone investment-grade ratings — Baa3 from Moody's and BBB- from Fitch — to tap offshore capital without leaning on bank or affiliate guarantees, a sign of confidence in its own credit as it funds liquidity and asset growth.
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