LG Chem to Issue Corporate Bonds Worth Up to 1 Trillion KRW

by Hwang Yoonju

Published 27 Feb.2024 18:17(KST)

3.4 Trillion Won Poured into Demand Forecasting

LG Chem to Issue Corporate Bonds Worth Up to 1 Trillion KRW

On the 27th, LG Chem announced that a demand forecast for corporate bonds worth 500 billion KRW targeting institutional investors attracted a total of 3.445 trillion KRW in funds. Accordingly, LG Chem plans to double the issuance of corporate bonds compared to the initial plan.

For the 2-year bonds with a subscription amount of 100 billion KRW, investment demand of 795 billion KRW was received. For the 3-year bonds worth 200 billion KRW, 1.48 trillion KRW was received; for the 5-year bonds worth 130 billion KRW, 770 billion KRW; and for the 7-year bonds worth 70 billion KRW, 400 billion KRW was received respectively.

LG Chem plans to use all the funds secured through this bond issuance for the repayment of maturing corporate bonds and as investment capital for future new growth engines.

The fixed interest rate will be finalized on the 5th of next month. The interest rate based on the subscription amount is expected to be 0.01 to 0.15 percentage points lower than LG Chem’s individual average market rate (the average evaluation rate by bond rating agencies).

This is approximately 0.14 to 0.32 percentage points lower compared to the average market rate for corporate bonds with the same credit rating as LG Chem.