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(LEAD) LG Chem raises US$1.56 bln via global debt sale to fund its EV battery biz

All News 14:03 April 09, 2019

(ATTN: ADDS more details in para 5)

SEOUL, April 9 (Yonhap) -- LG Chem Ltd., South Korea's No. 1 EV battery maker, said Tuesday that it has raised US$1.56 billion by selling debts overseas to finance the expansion of its production facility.

The company said demand for the debt amounted to $10.5 billion, the largest for any debt offering by a South Korean in overseas markets.

The debt offering is comprised of three tranches -- a $500 million tranche with a 5 1/2-year maturity, another $500 million worth of debt with a 10-year maturity and a 500 million-euro (US$563 million) one with a four-year maturity.

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

The debt sale was arranged by lead managers, such as Citigroup and BNP Paribas.

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.

(LEAD) LG Chem raises US$1.56 bln via global debt sale to fund its EV battery biz - 1


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