LG Energy Solution announced on June 25 that it has successfully issued $2 billion in bonds, comprising $700 million in standard foreign currency bonds with a three-year maturity, $800 million in global green bonds with a five-year maturity, and $500 million with a ten-year maturity. The interest rates for these bonds are set at 100 basis points above U.S. Treasury rates for the three-year bonds, 110 basis points higher for the five-year bonds, and 135 basis points higher for the ten-year bonds, each 30 basis points lower than initially proposed.
Moody’s has assigned LG Energy Solution a Baa1 investment-grade bond credit rating, reflecting its strong position in the global battery industry and substantial order backlog. The bond issuance attracted 285 global institutional investors, with orders totaling 4.3 times the amount offered.
The funds from this issuance will be used to enhance LG Energy Solution’s future competitiveness by investing in global production facilities and research and development. Additionally, part of the proceeds will refinance existing foreign currency bonds previously allocated to global production investments.
LG Energy Solution is currently operating and constructing eight production facilities in North America. These include joint venture plants with GM, Stellantis, Honda, and Hyundai Motor, as well as standalone plants in Michigan and Arizona dedicated to cylindrical batteries and energy storage systems (ESS).
This strategic funding initiative underscores LG Energy Solution’s commitment to expanding its global footprint and maintaining its leadership in the competitive battery market.
