In the demand forecast for bonds from LG Energy Solution, a total of 3.745 trillion won was raised.
According to the investment banking (IB) industry on the 6th, LG Energy Solution sought to raise 800 billion won and received purchase orders totaling 3.745 trillion won. For 150 billion won of 2-year bonds, orders totaled 1.345 trillion won; for 400 billion won of 3-year bonds, 1.57 trillion won; for 200 billion won of 5-year bonds, 760 billion won; and for 50 billion won of 7-year bonds, 700 billion won.
LG Energy Solution proposed rates based on the average rate of individual private bond evaluations (market rate) of ±30 basis points (1 basis point = 0.01 percentage points), achieving its target amounts at -15 basis points for 2-year bonds, 0 basis points for 3-year bonds, -10 basis points for 5-year bonds, and -5 basis points for 7-year bonds.
On the 14th, LG Energy Solution, which plans to issue bonds, is considering a maximum increase in issuance of 1.6 trillion won. The funds raised are intended for the purchase of cathode materials, debt repayment, and investment in global production facilities. The company is currently building five new factories in North America, including a joint plant with Stellantis in Ontario, Canada, a joint plant with Honda in Ohio, and a joint plant with Hyundai Motor Group in Georgia.
LG Energy Solution is a secondary battery corporation established through the partitioning of LG Chem's battery division in December 2020 as a subsidiary of LG Group. Based on its financial structure and market position within the industry, it received a credit rating of 'AA0 (Stable)' from domestic credit rating agencies, including Korea Ratings and Korea Composite Stock Price Index (KOSPI).