South Korea’s leading electric vehicle (EV) battery manufacturer LG Energy Solution (LGES) said it had successfully raised US$2bn in its latest bond issue aimed at generating funds for future facilities investment and for debt repayment.
The three year, five year and 10 year US dollar denominated bonds were issued at 1%, 1.1% and 1.35% above current US Treasury rates with orders placed by 285 global financial institutions. The five year and 10 year bonds, worth US$1.3bn, were green bonds whereby LGES committed to use the proceeds for “green” investments.
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LGES said in a statement: “Investors showed a strong response to LG Energy Solution’s debt sale due to its differentiated global battery output capacity and the long term growth potential of EVs despite slowing sales.”
The company sees the current slowdown in battery electric vehicle (BEV) demand as temporary before widespread adoption occurs later in the decade.
LGES is estimated to be the world’s third largest EV battery manufacturer after China’s Contemporary Amperex Technology Company Ltd (CATL) and BYD Auto, with market share of around 13%.
It has been expanding aggressively in North America and Europe in the last two years, including with standalone plants and with partnerships with automakers such as GM, Hyundai-Kia, Honda and Stellantis.
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