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LG Chem Vice Chairman and CEO Shin Hak-cheol (LG Chem) |
LG Chem has raised 820 billion won ($744.1 million) through sales of environment, social and governance bonds to make aggressive investments into new growth engines -- carbon neutrality, battery materials, new drugs and sustainable growth, the company said Monday.
According to South Korea’s leading chemical company, it issued bonds totaling 1.2 trillion won -- 820 billion won in ESG bonds and 380 billion won in general corporate bonds -- breaking records previously held by Hyundai Steel and SK hynix.
Hyundai Steel issued ESG Bonds worth 500 billion won in January, while SK hynix issued corporate bonds worth 1.06 trillion won last year.
“LG Chem was able to sell the ESG bonds successfully thanks to the investors’ optimistic expectations of the company’s petrochemicals, advanced materials and life sciences divisions even after the split-off of its battery division,” LG Chem Chief Financial Officer Cha Dong-seok said.
The entire 820 billion won will be used for the company’s transition to renewable energy sources, establishment of manufacturing processes using eco-friendly raw materials, production expansion of electric vehicle battery materials such as cathodes and expansion of quality management facilities for polio vaccines, and so on.
The remaining 380 billion won will be used for paying back debts and facility investments for the petrochemicals division.
The exact interest rates of the bonds will be decided on Thursday.
By Kim Byung-wook (
kbw@heraldcorp.com)
