South Korean battery producer LG Energy Solution (LGES) has raised $1bn through its first global green bond issue, which it plans to use to accelerate its investment in battery production facilities.
The $1bn global green bonds consist of a $400mn three-year bond and a $600mn five-year bond, according to LGES on 19 September. The three-year bond was issued at 100 basis points above the yield of US three-year Treasury notes, with the five-year bond being issued at 130 basis points above the yield of US five-year Treasury notes.
The firm in 2022 invested 6.3 trillion won ($4.76bn) in its battery production facilities globally and it plans to use the proceeds to further invest, it said. LGES in January said it aims to raise sales by 25-30pc this year and increase investment in production by over 50pc. LGES in February signed a non-binding preliminary agreement with US auto manufacturer Ford and Turkish conglomerate Koc Holding to build an electric vehicle (EV) battery facility of at least 25 GWh/yr in Turkey.
The firm will also invest to expand its product portfolio in energy storage systems and EV batteries, it added. LGES in August agreed to build two facilities for battery pre-processing and recycling in China with major Chinese battery metals producer Huayou Cobalt, which are expected to start operations by the end of 2024.
The firm's EV battery installation during January-June was up by 50pc from the previous year to 44.1GWh, making it the largest EV battery installer outside China, according to South Korean market intelligence firm SNE Research.
