LG Energy Solution in South Korea has issued its first global green bond, raising $1 billion.
The bond, which includes a three-year bond of $400 million and a five-year bond of $600 million, attracted orders from 114 institutional investors on its three-year bond and 186 on the five-year bond, with the total order reaching five times the issuance size.
LG Energy Solution plans to use the issuance to accelerate its investment in the global production network. During this year’s first-quarter earnings call, the company announced it had invested KRW 6.3 trillion ($5 billion) in capex for global battery production last year and plans to further increase the investment this year by more than 50 percent from 2022.
The company also aims to invest in expanding its product portfolio, not only EV batteries but also in energy storage systems (ESS) and others. With continued investments, the company plans to triple the revenue from its ESS sector in the next five years.