LOTTE SHOPPING Issues KRW 200B in Series 109 Unsecured Bonds... Refinancing Existing Debt, AA- Rating Maintained
LOTTE SHOPPING will publicly issue Series 109 unsecured bonds totaling KRW 200B (80B for 109-1 and 120B for 109-2). Subscription and payment are scheduled for June 10, 2026, with listing on June 11.
All proceeds (KRW 200B) will be used to repay existing debt maturing in July-August 2026, including corporate bonds (83-2: 70B, 96-2: 120B) and commercial paper (150B). Issuance costs of approximately KRW 7.2B will be covered by internal funds.
The bonds are rated AA- (stable) by Korea Ratings, Korean Investors Service, and NICE Investors Service. The final interest rate will be determined by a demand forecast on June 1, with the target range set at -0.30%p to +0.30%p relative to the individual fair yield on the business day before subscription.
In Q1 2026, consolidated revenue was KRW 3.58 trillion (+3.6% YoY), operating profit KRW 252.9B (+70.6%), and net profit KRW 143.9B (+695%), showing significant earnings improvement. The debt-to-equity ratio stood at 126.01% and dependency on borrowings at 36.90%, maintaining a stable financial structure.
[AI Comprehensive Analysis]This disclosure represents a routine refinancing bond issuance with no equity dilution or capital structure change. Given the AA- credit rating and sound financial indicators, debt service capacity is adequate. However, ongoing monitoring of earnings volatility due to retail industry headwinds and intense competition, as well as the large debt pile (consolidated total borrowings of KRW 14.2T), is warranted.