LOTTE rental Provides 38.4 Billion KRW Debt Guarantee for Lotte Autolease Foreign Borrowing with Moderate Financial Impact

LOTTE rental decided to provide a payment guarantee of 38.4 billion KRW for affiliate Lotte Autolease's foreign borrowing from China Construction Bank Seoul Branch. This amount represents 2.47% of LOTTE rental's equity, and total outstanding guarantees amount to 233.8 billion KRW.
Lotte Autolease's recent financials show assets of 554.3 billion KRW, liabilities of 329.2 billion KRW, equity of 225.1 billion KRW, and net income of 9.4 billion KRW, indicating a stable condition. The guarantee supports the affiliate's foreign borrowing without any share dilution or capital change.
The counterparty China Construction Bank is a highly credible global bank, lowering transaction risk. The decision was made at a board meeting with full attendance of four outside directors.
[AI Summary]LOTTE rental's 38.4 billion KRW debt guarantee for Lotte Autolease's foreign borrowing is limited to 2.47% of equity, with minimal direct impact on shareholder value. However, sustained financial support for affiliates may slightly pressure creditworthiness, so investors should monitor future guarantee expansions.