LG Chem Issues 900 Billion KRW Corporate Bonds... To Enhance Petrochemical Business

[Asia Economy Reporter Hwang Yoon-joo] LG Chem is issuing corporate bonds worth 900 billion KRW. The investment funds secured through this bond issuance will be used as facility funds to advance the business structure of the petrochemical division.

LG Chem announced that on the 11th, it conducted a demand forecast for corporate bonds worth 500 billion KRW targeting institutional investors, resulting in a total of 2.37 trillion KRW in funds attracted, leading to an expanded issuance of corporate bonds worth 900 billion KRW, exceeding the initial plan.

The funds from the bond issuance will be invested in expanding the Yeosu NCC (Naphtha Cracking Center) plant and high value-added PO (polyolefin) production facilities.

LG Chem has recorded participation amounts in the 2 trillion KRW range for three consecutive years since 2018 in public bond demand forecasts. In 2018, 2.16 trillion KRW was attracted, and in 2019, 2.64 trillion KRW was attracted.

With many investors flocking to the demand forecast, LG Chem was able to secure investment funds at favorable interest rates and achieve early liquidity. Specifically, it plans to issue 350 billion KRW in 3-year maturity bonds, 250 billion KRW in 5-year maturity bonds, 50 billion KRW in 7-year maturity bonds, and 250 billion KRW in 10-year maturity bonds.

The 3-year, 5-year, and 7-year maturity bonds are expected to have interest rates similar to the individual market average rates, while the 10-year maturity bonds are expected to have rates 0.05%p lower than the individual market average rates. The final fixed interest rates will be decided on February 18.

Chadong-seok, Vice President and CFO (Chief Financial Officer), said, "The successful issuance of this corporate bond reflects investors' positive evaluation of our company's future growth potential," adding, "We will continue to actively promote business structure advancement across all business divisions to achieve world-class business competitiveness."

This content was produced with the assistance of AI translation services.