This photo shows LG Chem Ltd’s cathode plant in Cheongju, North Chungcheong Province, 112 kilometers south of Seoul, on June 26, 2023, as provided by the company.
SEOUL, July 12 (Korea Bizwire) — LG Chem Ltd. said Wednesday it has raised US$2 billion by selling exchangeable bonds (EB) that can be converted to shares of its battery-making subsidiary, LG Energy Solution Ltd.
The bond sale came in two tranches worth $1 billion each, with the coupon for five-year EBs set at 1.25 percent and 1.6 percent for seven-year debts, the South Korean chemical producer said.
The bonds can be exchanged into common shares of LG Energy Solution, the world’s second-largest battery manufacturer 81.84 percent owned by LG Chem.
The bond sale attracted more than $10 billion from 150 investors across Asia and Europe, about five times the issuance target.
LG Chem said the fund will be used for facility investment and operations to further solidify the foundation for future growth.
LG Chem has pledged to invest 10 trillion won through 2025 in its three future growth drivers — eco-friendly materials, secondary battery components and development of new drugs.
(Yonhap)
