LG Chem's corporate bond issuance gets good response from investors
SEOUL, AJU - LG Chem, a leading battery producer in South Korea, will double the planned issuance of corporate bonds to one trillion won ($886 million) to expand production, saying advance subscription from investors was far higher than expected.
The company said Thursday it would issue bonds if interest rates are fixed next week. The total sum of advance subscription exceeded 2.6 trillion, and LG Chem will use proceeds for the expansion of car battery and naphtha cracking production facilities.
“The issuance of corporate bonds reflects a positive evaluation by investors of our stable financial status and future growth,” LG Chem president Chung Ho-young said. LG Chem, which has battery plants in South Korea, Europe, China and North America, has announced a series of preemptive investments to expand production.