LG Chem issues $1.56 billion in green bond for investment in battery
SEOUL, AJU - LG Chem, a leading battery producer in South Korea, has issued bonds worth $1.56 billion that will be used for an investment to meet growing orders for electric vehicle batteries. It was the biggest green bond to be issued by a South Korean company.
LG Chem said Tuesday that purchase orders were bigger than expected, leading to the issuance of bonds under improved terms. “The successful issuance of this global green bond proved once again that we have the world's best competitive edge in electric vehicle batteries,” LG Chem president Chung Ho-young said in a statement.
Global green bonds are issued at a more competitive rate than ordinary bonds for use in new and renewable energy and eco-friendly investments. LG Chem said its global green bond consists of $500 million with a maturity of 5.5 years, $500 million with a maturity of ten years and 500 million euros with a four-year maturity.
LG Chem has announced a series of preemptive investments to expand production. In March, the company decided to double the planned issuance of corporate bonds to one trillion won for the expansion of battery and naphtha cracking production facilities.