South Korea’s Lotte Tour Development Co Ltd has completed the issuance of convertible bonds totalling KRW94 billion (US$83 million) for its recently opened Jeju Grand Hyatt Hotel on the holiday island of Jeju.
According to a report by The Financial News in Korea, Lotte Tour this week issued a final round of bonds worth KRW57 billion (US$50 million) to a group of investment firms, named as private equity fund Curious Mirae Asset Corporate Financial Stability PEF, Fountain Asset Management, GVA Asset Management, SK Securities, and Kiwoom Securities. The bonds were issued at an interest rate of 2.5% and maturity rate of 4.5%, the report said.
Lotte Tour is said to have raised a total of KRW79.4 billion (US$70 million) from the issuance of convertible bonds to the value of KRW94 billion (US$83 million), while also adding senior and subordinated loans totalling KRW700 billion (US$619 million).
Opened as a non-gaming resort on 18 December 2020 while the company awaits approval to relocate casino operations from nearby Lotte Hotel Jeju, the US$1.4 billion Jeju Dream Tower is the tallest building in Jeju at 38 floors or 169 meters high.
Aside from the 5-star Grand Hyatt Jeju, it also features a retail mall, 14 restaurants and bars, an outdoor pool deck, top floor skydeck with lounge and two spas.
Relocation of the casino will expand Lotte Tour’s current gaming space by almost five times to more than 5,000 square meters and see its five gaming tables and 51 machines rise to 150 tables and 300 machines.
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