LG Energy Solution successfully raises $1 bn in green bonds

[Courtesy of LGES]

LG Energy Solution Ltd. (LGES), the pure-play electric vehicle battery maker under South Korea’s LG Group, has successfully raised $1 billion worth of dollar-denominated bonds in the global market.

LGES announced Tuesday that it successfully issued $1 billion in global green bonds, including $400 million with a maturity of 3 years and $600 million with a maturity of 5 years.

The issuance rates were set at 1 percentage point and 1.3 percentage points higher than the U.S. 3-year and 5-year Treasury bond rates, respectively. This is 0.4 percentage point lower each from the initially offered rates.

The issuance attracted 114 institutional investors for the 3-year bonds and 186 institutional investors for the 5-year bonds, with orders totaling five times the offering amount.

The strong demand from global investors was attributed to LGES’ aggressive investment plans, coupled with expectations of future growth, including benefits from the U.S. Inflation Reduction Act (IRA), sources said.