LG Energy Solution submitted a securities registration statement for the issuance of corporate bonds to the Financial Supervisory Service on 4th. This is the third time that LG Energy Solution has issued won-denominated corporate bonds. The corporate bonds consist of 2-year, 3-year, 5-year, and 7-year maturities, with a total reported issuance amount of 800 billion won.
The company plans to conduct a demand forecast for institutional investors on 6th and will consider increasing the issuance based on the results. Specific requirements such as the issuance price and confirmed interest rate will be determined based on the results of the demand forecast.
The funds secured through this corporate bond issuance are planned to be used for the ongoing large-scale global production facility (Capex) investments. Currently, LG Energy Solution is 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.
Following the successful issuance of its first corporate bonds worth 1 trillion won in 2023, LG Energy Solution issued corporate bonds worth 1.6 trillion won last year, setting a record for the largest amount of a single issuance.
LG Energy Solution received an AA0 (stable) credit rating from domestic credit rating agencies such as Korea Ratings, recognizing its stable financial structure and leading market position in the industry.