Jeju Dream Tower backer refinances US$600mln borrowings

Dec 13, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Lotte Tour Development Co Ltd, operator of the Jeju Dream Tower resort (pictured), a facility with foreigner-only casino on South Korea’s holiday island of Jeju, has announced refinancing of KRW839-billion (US$597.2-million) worth of borrowings.

The information is according to a spokesperson at Lotte Tour, in response to GGRAsia’s telephone enquiry.

A one-year KRW700-billion loan raised in December 2023 – itself a refinancing of previous borrowings – matured on November 30.

According to the company spokesperson’s commentary on the latest exercise, the new KRW839-billion loan is for 30 months, to May 2027.

It is secured via mortgage of 59 percent of the resort’s “land area price” as per a written company statement. The first KRW800 billion of the loan facility is priced at 6.0 percent annual interest. The remaining KRW39 billion is priced at 9.0 percent interest.

Repayment of the entire loan facility within 20 months, is subject to an early-repayment fee.

The company spokesperson stated: “The firm would be able to save KRW20-billion annual interest cost from the new loan”.

Lotte Tour reported recently its November and 11-month aggregate performance.

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