Walkers Advises on Two Korean Asset-backed Securitisation Social Bonds

Walkers is proud to have advised on Lotte Card's US$450 million cross-border social asset-backed securitization (ABS). The notes are backed by credit card receivables and Lotte Card will use with proceeds of the transaction towards lending and financial services for low-income families in South Korea. BNP Paribas, Société Générale and DBS Bank acted as underwriters on this transaction.

Social bonds are increasingly becoming more common as businesses and investors increase their focus on ESG mandates.

Earlier this year, Walkers also advised on Samsung Card's US$300 million cross-border social ABS. The five-year notes were backed by a portfolio of high-quality credit card receivables. Proceeds from the notes will be used to support employment initiatives for SMES which have suffered during the COVID-19 lockdowns and in providing lending services for people and businesses that may lack access to the banking system. BNP Paribas acted as the arranger on this transaction.

Walkers advised on the Cayman law aspects of both transactions led by partner Kristen Kwok and assisted by counsel Richard Williams.