LG Energy Solution is preparing its third won-denominated bond offering, seeking to raise 800 billion won ($600 million) to finance its expansion in North America’s electric-vehicle market.
The South Korean battery manufacturer plans to gauge institutional investor interest on Feb. 6 for bonds with maturities ranging from two to seven years. The company said it may increase the size of the offering based on demand.
The fundraising comes as LG Energy builds five new facilities across North America, including joint ventures with Stellantis in Ontario, Honda in Ohio and Hyundai Motor in Georgia. These partnerships aim to secure long-term supply contracts with major automakers.
This offering follows the company’s previous bond sales of 1 trillion won in 2023 and 1.6 trillion won last year. LG Energy maintains an AA0 credit rating from Korean agencies, reflecting its stable market position.
The expansion in North America allows the battery maker to reduce shipping costs and align with regional trade requirements as demand for electric vehicles grows. The company’s focus on local production also positions it to benefit from U.S. incentives for domestic battery manufacturing.
