LG Energy Solution launched its first “global green bond”, raising $1 billion. It plans to accelerate investment in its global battery production network with the proceeds.
The issue – in two maturities of three and five years respectively – attracted orders from 114 institutional investors on its three-year bond and 186 on its five-year bond. The total order was five times the issue size, the company said.
Credit rating agencies Moody’s and S&P assigned LG Energy Solution a bond credit rating of Baa1 / BBB+.
LGES aims to continue investing in expanding its product portfolio, not only in electric vehicle batteries but also in energy storage systems (ESS) and others.
It has announced a ₩3 trillion ($2.3 billion) investment in its new 16 GWh ESS battery plant in Arizona. With continued investments, the company plans to triple the revenue from its ESS sector in the next five years.
Total order backlog stood at ₩440 trillion ($331 billion) as of June 2023, according to the company. It claims to be the world’s top battery-related patent holder with over 25,000 patents.
