[공시] LG Chem (051910) issues the largest ESG bond in Korea… Total 1.2 trillion won

[오늘경제 = 김성현 기자] Shin Hak-cheol, Vice Chairman of LG Chem, a KOSPI listed company. Photo = courtesy of LG Chem

LG Chem is issuing the largest ESG bonds in Korea.

On the 15th, LG Chem announced that it will issue a total of 1.2 trillion won in corporate bonds, including 820 billion won in ESG bonds and 380 billion won in general corporate bonds.

This is the largest ever in the total issue size of corporate bonds as well as ESG bonds issued by general companies.

The issuance of ESG bonds worth KRW 800 billion by LG Chem is expected to serve as an opportunity for the industry’s ESG management, which had remained at the declarative level, to transition to the stage of full-scale investment and execution.

As a result of the demand forecast conducted on the 9th for institutional investors for corporate bonds at LG Chem, it was reported that a total of 2.5 trillion won, the second largest in history, was mobilized, and thanks to this successful demand forecast, corporate bonds were purchased from the original plan of 600 billion won. LG Chem explained that it was decided to issue a double amount.

LG Chem’s ESG bonds will be issued as a sustainability bond that combines green bonds and social bonds, and ESG bonds are socially responsible investments such as environment, social, and governance. It is a bond issued for the purpose of.

LG Chem invests 820 billion won in ESG bonds ▲Invests to convert renewable energy to reduce carbon dioxide emissions ▲Builds production processes using eco-friendly raw materials ▲Expands battery materials for electric vehicles such as anode materials ▲Expands polio vaccine quality management facilities ▲Industrial accident prevention facilities Improvement and replacement ▲ We plan to use the full amount of financial support for mutual growth with small and medium-sized business partners.

LG Chem makes sustainability a top priority management task, and develops a business model that can provide innovative and sustainable solutions to the environment and society, such as recycling plastics, biodegradable resins, biodiesel-based eco-friendly resins, and supply of next-generation polio vaccines. Etc. are accelerating ESG management.

“This successful issuance of ESG bonds is because investors have positively evaluated the company’s sustainable business structure and future growth, including petrochemicals, advanced materials, and life sciences, even after the spin-off of the battery business,” said Chai Chai, vice president of LG Chem’s CFO. “We will establish and implement specific measures to accelerate ESG management in all business sectors, further strengthening our position as a leading company in the sustainable field.”

The 380 billion won of general corporate bonds issued together will be used for debt repayment and facility funding in the petrochemical sector.

On the other hand, LG Chem’s corporate bond consists of a 3-year bond of 350 billion won, a 5-year bond of 270 billion won, a 7-year bond of 200 billion won, a 10-year bond of 260 billion won, and a 15-year bond of 120 billion won, of which 3-year, 5-year, and 7-year bonds. It will be issued as this ESG bond.

The 3-year, 5-year, 7-year, and 10-year bonds with maturities are expected to be similar to the individual public interest rates, and the 15-year bonds are expected to be set at 0.20%p lower than the individual public interest rates. It is finally decided on work.

Meanwhile, as of the 15th, LG Chem’s real-time stock price is 990,000 won (+3.13%), a change of ▲30,000 won from the previous day. In addition, the trading volume is 449,007 shares, recording 1,010,000 won for high price and 984,000 won for low price.

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