Lotte Tour Development Co, the company behind the proposed Jeju Dream Tower Integrated Resort is raising funds through the issuance of KRW 40 billion (US$35.3 million) of convertible bonds.
A Lotte Tour Company official said that the money raised will be used to acquire one of existing foreigners-only casino license in Jeju, and for working capital.
This non-guaranteed Convertible Bonds have duration of 3 years with 0 percent coupon rate, 1 percent yield-to-maturity, and conversion price at par, KRW 8,300 without any discount.
“The successful issuance of convertible bonds with an exceptional condition despite the financial market uncertainty due to North Korean’s nuclear crisis is a result of high growth potential of Jeju Dream Tower Integrated Resort, which will become a key tourist attraction in Jeju,” said Lotte Tour in a statement.
Jeju Dream Tower Integrated Resort is a Korea-China co-development project in which Lotte Tour Company and China’s Greenland Group are co-developing the tallest, and the largest landmark building in Jeju.
Lotte Tour Development owns the 750 keys hotel, hotel facilities, foreigners-only casino, observation deck, and shopping mall which occupies 59.02 percent of GFA, and Greenland Group is selling remaining 40.98 percent as 850 keys hotel residence.
Jeju Dream Tower Integrated Resort is the only urban integrated resort in Korea, located 3 km from Jeju International Airport and 7 km from Jeju International Cruise Terminal.
Construction of Jeju Dream Tower Integrated Resort commenced in May, 2016 and will be completed in September, 2019.
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