But the rate dropped to the 8% level last year, and then to the 5% level this year.DIG Airgas Co., formerly known as Daesung Industrial Gases, and DN Solutions Co., the world’s third-largest machine tool maker, are in negotiations with lenders to refinance debts worth 1.8 trillion won and 1 trillion won, respectively, at a rate of 5.7% and 5.3%.Lotte Card Co., the country’s No.5 credit card issuer, and Lotte Group’s non-life insurer Lotte Insurance Co.have been actively seeking to refinance or recapitalize their debts worth 1 trillion won and 300 billion won, each, in a favorable loan rate environment.
Market observers expect the country’s acquisition loan rate will stabilize below 6% this year as major local commercial banks and securities firms are willing to lend money for acquisitions, which are considered safer loans while reducing riskier investments in equities and real estate.
According to sources in the Korean investment banking industry on Tuesday, a STIC Investment-IMM Private Equity consortium is said to have talked with a major local commercial bank to finance loans to buy the specialty and industrial gas unit of Hyosung Chemical Corp.at an interest rate in the low-5% level.
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