LG Energy Solution Issues First Corporate Bonds Since Inception... 500 Billion KRW Scale

Demand Forecast Conducted on the 22nd

LG Energy Solution is set to issue its first corporate bonds since its launch.

LG Energy Solution announced on the 19th that it has submitted a securities registration statement to the Financial Supervisory Service for the issuance of corporate bonds.

LG Energy Solution Headquarters, Yeouido-daero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The corporate bonds will consist of 2-year, 3-year, and 5-year maturities, with a registered issuance amount of 500 billion KRW. A demand forecast will be conducted for institutional investors on the 22nd, and depending on the results, an increase in issuance will be considered. Specific terms such as the issue price and fixed interest rate will also be determined based on the demand forecast results.

Previously, Korea Ratings and NICE Investors Service rated LG Energy Solution’s corporate bonds as 'AA (Stable)' citing the company’s stable business foundation based on its leading global position in the secondary battery market. Factors considered included excellent financial stability, a high order backlog amounting to 385 trillion KRW as of the end of last year, favorable market conditions such as the U.S. Inflation Reduction Act (IRA), production stabilization, and superior quality.

Through the issuance of corporate bonds, LG Energy Solution plans to accelerate investments in expanding global battery production capacity and research and development (R&D) for next-generation batteries. Last year, LG Energy Solution invested 6.3 trillion KRW in capital expenditures (CAPEX) related to global battery production facilities, and this year plans to increase investment by more than 50% compared to the previous year. R&D expenses are also being expanded annually, with 876 billion KRW invested last year.