South Korea’s LG Energy Solution raises $1 billion in green bonds

(Reuters) – South Korea’s LG Energy Solution confirmed on Tuesday it had raised $1 billion in its first global green bond issuance.

Last month, Reuters reported citing sources that the company was aiming to raise about $1 billion from the sale of two dollar-denominated green bonds.

The $1 billion bond includes a three-year bond of $400 million and a five-year bond of $600 million, LG Energy Solution said in a statement.

The three-year bonds were issued at a yield of three-year Treasuries plus 100 basis points and five-year bonds at five-year Treasuries plus 130 basis points, according to the company.

LG Energy Solution said it planned to use the funds to accelerate its investment in global production network.

It added that it aimed to lead on with investments in expanding product portfolio, in not only electric vehicle batteries but also energy storage systems (ESS) and others.

LG Chem, LG Energy Solution’s parent company, had raised $2 billion in five- and seven-year exchangeable bonds in July. Those bonds will be exchangeable into common shares of LG Energy Solution.

(Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi Aich)