South Korea's LG Chem said it has raised close to US$1.56bn in overseas bonds to finance expansion of its electric vehicle (EV) battery production capacity, according to a report by the local Yonhap news agency.

The company's debt offering was split into three tranches, including US$500m with a 5.5-year maturity; a further US$500m with a 10-year maturity; and EUR500m (US$563m) with a four-year maturity. The offering was almost seven times over-subscribed. 

LG Chem is South Korea's largest manufacturer of batteries for EVs and hybrid vehicles with a large number of domestic and overseas clients including Volkswagen-Audi and Renault-Nissan.

The company is targeting revenue of KRW32trn (US$28bn) in 2019, up by over 13% on last year.

LG Chem said it would use the funds to expand its EV battery plant capacity and other operations within the group.

Late last year, LG Chem said it would spend KRW3 trillion by 2023, including KRW651bn on a new EV battery plant in Poland and a larger EV battery factory in China, the largest and fastest growing market for EVs.