LG Energy Solution announced on the 26th that it has successfully issued foreign currency bonds totaling $2 billion (approximately 2.93 trillion won).
This issuance of foreign currency bonds consists of ▲$400 million with a 3-year maturity, $900 million of general foreign currency bonds with a 5-year maturity, and ▲$700 million of global green bonds with a 10-year maturity. The issuance interest rates were determined to be +135 basis points (1 basis point is 0.01 percentage point), +145 basis points, and +170 basis points compared to the U.S. 3-year, 5-year, and 10-year government bonds, respectively. This level is 30 basis points lower for the 3- and 5-year bonds and 35 basis points lower for the 10-year bond compared to the initial price guidance. The initial price guidance is the expected issuance spread announced by the issuer when investor orders open.
A total of 262 global institutional investors participated in this issuance of foreign currency bonds, with orders reaching four times the total public offering amount.
LG Energy Solution plans to use the funds raised from this issuance of foreign currency bonds for ongoing large-scale global production facility (Capex) investments. Currently, LG Energy Solution is constructing five new factories in North America, including the Stellantis joint plant in Ontario, Canada, and the Honda joint plant in Ohio, which are scheduled to begin operations this year.