April 27, 2024

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LG Chem said on April 9 that it has raised $1.56 billion by selling debts overseas to finance the expansion of its production facility.

The company said demand for the debt amounted to $10.5 billion, the largest for any debt offering by a South Korean firm in overseas markets.

The debt offering is comprised of three tranches -- a $500 million tranche with a 5 1/2-year maturity, another $500 million worth of debt with a 10-year maturity and a 500 million euros ($563 million) one with a four-year maturity.

The company said the proceeds from the debt sale will be used to expand its EV battery plant and other production facilities.

LG Chem aims to log 32 trillion won in sales this year, up 13.5 percent from a year earlier.

Late last year, LG Chem announced investments totaling 3 trillion won. In October, the country’s largest chemical company said it will invest 2.1 trillion won by 2023 to build an EV battery plant in China in the latest move to meet growing demand for batteries for zero-emissions cars.

In November, LG Chem also decided to invest 651 billion won in its Polish battery plant to expand capacity.

By Ram Garikipati and newswires (ram@heraldcorp.com)