SEOUL, Sept. 19 (Yonhap) -- LG Energy Solution Ltd. (LGES) said Tuesday it has raised US$1 billion by selling global green bonds, a funding that will help the battery maker move forward with its aggressive market expansion.
LGES sold $400 million worth of three-year debts in one tranche and $600 million worth of bonds in another tranche with a five-year maturity, the company said in a release.
The coupon for the three-year bonds was set at 100 basis points above the three-year U.S. Treasurys, while that of the five-year debts was set at 130 basis points above the five-year U.S. government bonds.
Green bonds refer to debts that are sold with commitment to use the proceeds for green investments.
The proceeds from the bond sale will mainly be used for investment in global battery manufacturing sites, LGES said.
LGES, a supplier to General Motors Co., Tesla Inc. and Hyundai Motor Co., is building new battery manufacturing facilities in the United States as part of its strong drive for foreign expansion.
LGES said earlier it plans to increase capital spending this year by more than 50 percent compared with last year's 6.3 trillion won ($4.76 billion).
As of end-June, LGES' order backlog had stood at 440 trillion won.
The latest bond sale attracted some 300 investors, with the bids received amounting to five times the offered amount, LGES said.
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