LG Chem Successfully Issues $300 Million Green Bond for "Secondary Battery Investment"

[Asia Economy Reporter Oh Hyung-gil] LG Chem has successfully issued a green bond to secure investment funds for strengthening competitiveness in the secondary battery materials business.

On the 8th, LG Chem announced that it issued a global green bond worth 300 million dollars, approximately 390 billion Korean won. Green bonds are international bonds limited to eco-friendly projects or infrastructure investments such as climate change and renewable energy.

LG Chem plans to invest all the funds raised through the green bond in electric vehicle battery materials, including cathode materials and separators. Including the 2.5 trillion won secured during LG Energy Solution's initial public offering (IPO), the company has secured a total of 3.5 trillion won in investment funds this year through this green bond issuance and facility loan borrowings.

This green bond was issued in US dollars (USD) as a single bond of 300 million dollars with a 3-year maturity. It was set at a fixed interest rate of 4.436%, which is the 3-year US Treasury bond yield of 3.036% plus 1.400 percentage points. This is 0.25 percentage points lower than the initially offered spread.

An LG Chem official explained, "Despite unstable international conditions and deteriorating investor sentiment due to the US base interest rate hike, we were able to raise foreign currency under competitive conditions by eliciting positive responses from investors."