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LG Chem to sell 1 tln won debt to fund its EV battery biz

All News 14:38 March 07, 2019

SEOUL, March 7 (Yonhap) -- LG Chem Ltd., South Korea's No.1 EV battery maker, said Thursday that it plans to sell 1 trillion won (US$886 million) worth of debt next week to finance the expansion of its production facility.

The debt will be priced on Tuesday, and bonds will come in four tranches with maturity ranging from three to 10 years, it said.

LG Chem originally sought to sell 500 billion won in debt, but doubled the amount on strong demand.

The company said the proceeds from the debt sale will be used to expand its EV battery plant and other production facilities.

LG Chem aims to log 32 trillion won in sales this year, up 13.5 percent from a year earlier.

Late last year, LG Chem announced investments totaling 3 trillion won. In October, the country's largest chemical company said it will invest 2.1 trillion won by 2023 to build an EV battery plant in China in the latest move to meet growing demand for batteries for zero-emissions cars.

In November, LG Chem also decided to invest 651 billion won in its Polish battery plant to expand capacity.

LG Chem entered the EV battery business in 2009 and has supplied batteries to global carmakers, such as Audi and Renault-Nissan. It currently operates EV battery plants in China, the United States and South Korea.

The company said earlier that it aims to raise its EV battery production capacity to 110 gigawatt hours (GWh) by 2020 from the current 34 GWh.

LG Chem to sell 1 tln won debt to fund its EV battery biz - 1

sam@yna.co.kr
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