LG Energy Solution issues $2.9 trillion foreign currency bonds for "global production facility investment"

262 Global Institutional Investors Participate
Orders Reach About Four Times the Total Offering Amount

LG Energy Solution has successfully issued foreign currency bonds totaling $2 billion (2.9 trillion KRW).

LG Energy Solution Michigan Holland Plant, USA. Photo by LG Energy Solution, Yonhap News Agency

On the 26th, LG Energy Solution announced that it successfully issued $400 million in 3-year maturity bonds, $900 million in 5-year maturity general foreign currency bonds, and $700 million in 10-year maturity global green bonds.

The issuance yields were set at 135 basis points (1bp = 0.01 percentage point), 145bp, and 170bp higher than the U.S. 3-, 5-, and 10-year Treasury yields, respectively. Compared to the initial offered rates, the 3- and 5-year yields were lowered by 30bp, and the 10-year yield by 35bp.

A total of 262 global institutional investors participated in this foreign currency bond issuance, with orders reaching 4.0 times the total offering amount.

LG Energy Solution plans to use the funds raised through this foreign currency bond issuance for large-scale global production facility investments currently underway.

Currently, LG Energy Solution is constructing five new factories in North America, including the Stellantis joint venture plant in Ontario, Canada, and the Honda joint venture plant in Ohio, USA, both scheduled to begin operations this year.

Among them, the Arizona plant will be the first dedicated cylindrical battery production facility with a capacity of 36 gigawatt-hours (GWh), producing the 46-series batteries for electric vehicles, known as the "next-generation battery."

LG Energy Solution has announced plans to establish an energy storage system (ESS) lithium iron phosphate (LFP) battery production facility in the existing Michigan standalone plant expansion line, and is focusing on maximizing efficiency through rebalancing North American production facilities, including pursuing the acquisition of a third joint venture plant with General Motors (GM).

So far, LG Energy Solution’s announced investment plans in the United States amount to approximately 30 trillion KRW.

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