LG Card, one of Korea's largest credit card companies in terms of assets with over KRW33.7 trillion (USD27.9 billion) in assets, is preparing to complete a USD300 million cross-currency interest rate swap on the back of a recent asset-backed security transaction. "We're just waiting for approval," said Kim Jae Hyun, head of finance for debt related transactions in Seoul, noting that the insurer has applied to the Financial Supervisory Service to okay the swap. Kim said that he expects it to be signed-off in the coming days and should be able to enter the transaction by the end of the month. LG will convert the entire issue.
The ABS, based on credit card receipts and issued in greenbacks, will be converted back from floating dollars to fixed won, said Kim. As the transaction is still in the works, he declined to elaborate on specific rates. The counterparty for the swap will be Bank of America. "They're the same entity that handled the ABS," said Kim, adding, "As they understand the structure it will save time." A marketer at BofA confirmed the it would handle the swap, but declined further comment.
