LG Energy Solution raises $1 billion in green bonds

LG Energy Solution has raised $1 billion through its first global green bond issuance, aiming to accelerate its overseas investment. The bond sale attracted 300 investors and received bids five times the offered amount.

LG Energy Solution's battery manufacturing plant in Poland [LG ENERGY SOLUTION]

LG Energy Solution said Tuesday it raised $1 billion in its first-ever global green bond issuance, in a move to accelerate its overseas investment.

The Korean battery maker sold three-year bonds worth $400 million and five-year bonds worth $600 million. The three-year bonds were issued at 100 basis points above the three-year U.S. Treasury bonds, and the five-year bonds at 130 basis points above the five-year U.S. government bonds, according to the company.

The latest bond sale attracted 300 investors, with the bids received amounting to five times the offered amount, LG Energy said.

Green bonds refer to debts that are sold for the purpose of financing or refinancing projects that contribute positively to the environment and climate.

LG Energy Solution currently has various manufacturing plants across the world, with eight of them in North America. It supplies batteries to major EV makers including Tesla, Hyundai Motor and General Motors.

It spent around 6.3 trillion won ($4.7 billion) last year on expanding global manufacturing factories. It aims to use at least half that amount this year for its expansion in global businesses.

As of end of June, LG Energy Solution's order backlog stood at 440 trillion won ($332 billion).

BY SARAH CHEA [chea.sarah@joongang.co.kr]