Cash to gamble

Jeju Dream Tower foundations almost ready

Tomorrow, Lotte Tour Development Co. Ltd. is issuing KRW40 billion (US$35 million) of non-guaranteed convertible bonds (CB) to acquire one of the existing foreigners-only casino licences in Jeju, a holiday destination island in South Korea.
The company is already making progress on its double tower in downtown Jeju. The project – Jeju Dream Tower Integrated Resort – is a Korean-Chinese partnership between Lotte Tour (59 per cent) and Mainland China’s largest real estate developer Greenland Group.
Destined to become an island landmark, Jeju Dream Tower “will be the tallest and the biggest”, the company’s COO, Lawrence Teo, told Business Daily.
One of the towers will have a 750-room hotel, foreigners-only casino, observation deck and shopping mall, owned by Lotte, while the second tower, housing 850 residences, will be commercialised by Greenland Group.
The non-guaranteed CB have a duration of three years with 0 per cent coupon rate, 1 per cent YTM and conversion price at par, KRW8,300 without 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 the high growth potential of Jeju Dream Tower, which will become a key tourist attraction’ on the island stated a company release yesterday following a board of directors meeting.
Timefolio Asset Management (KRW22 billion), Pine Asia Asset Management KRW8.5 billion), Shinhan Investment (KRW5 billion), KB Securities (KRW3 billion) and IBK Asset Management (KRW1.5 billion) will be participating in the convertible bonds. Mirae Asset Daewood is the investment banker in tomorrow’s fundraiser.
At 38 storeys (169 metres tall) Dream Tower will be the only urban IR in Korea, 3km from Jeju International Airport and 7km from the island’s international cruise terminal.
Construction on the project began in May last year and is slated to open its doors in September 2019.