This article was published on June 1, 2026, at 16:58 on Signal, a capital markets compass.
Lotte Shopping (023530.KS) secured more than 1 trillion won in orders during its second corporate bond demand forecast of the year. With a recovery in domestic consumption and an expansion of foreign tourist arrivals expected this year, the retailer's strong first-quarter earnings drew concentrated interest from institutional investors.
According to investment banking (IB) industry sources on Monday, Lotte Shopping conducted a demand forecast targeting institutional investors to raise 200 billion won in corporate bonds. Institutions placed orders totaling 1.085 trillion won. Specifically, the two-year tranche drew 510 billion won in bids against an 80 billion won target, while the three-year tranche attracted 575 billion won against a 120 billion won target.
With trillion-won-level demand pouring in, the issuance is expected to be completed at an interest rate below the level traded in the market. Ahead of the demand forecast, Lotte Shopping set a target rate band by adding -30 to 30 basis points (1bp = 0.01 percentage point) to its individual private valuation rate (the company's specific rate set by private bond rating agencies). The demand forecast results showed that both the two-year and three-year tranches filled their target amounts at -3bp versus the private valuation rate of the same maturity.
The company holds a solid credit rating of "AA-, stable," and with earnings growth providing additional support, demand exceeded the 980 billion won secured during the demand forecast in January this year. Lotte Shopping posted operating profit of 252.9 billion won and net profit of 143.9 billion won on a consolidated basis in the first quarter, with operating profit up 71% from the same period last year and net profit growing roughly eightfold.
Lotte Shopping plans to use the funds raised through this public bond issuance for debt repayment. Commercial paper (CP) worth 150 billion won matures on the 18th of this month, while public bonds worth 120 billion won and 70 billion won are due in July and August, respectively. Meanwhile, the public bond issuance is co-managed by Daishin Securities, Samsung Securities, KB Securities, Shinhan Investment & Securities, NH Investment & Securities, Kiwoom Securities, and Hana Securities.
