[M오토데일리 이상원기자] LG Chem is issuing the largest ESG bonds in Korea.
On the 15th, LG Chem announced on the 15th that it would issue a total of 1.2 trillion won in corporate bonds, including KRW 820 billion in ESG bonds and KRW 380 billion in general corporate bonds.
This is the largest ever in the total issuance of ESG bonds as well as corporate bonds issued by general companies.
LG Chem’s issuance of 800 billion ESG bonds 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 LG Chem’s corporate bonds, a total of KRW 2.6 trillion, the second largest in history, was gathered.
LG Chem decided to issue corporate bonds twice as much from the original plan of 600 billion won thanks to successful demand forecasting.
LG Chem’s ESG bonds will be issued as a sustainability bond that combines green bonds and social bonds.
ESG bonds are bonds issued for the purpose of socially responsible investment such as the environment, society, and governance.
LG Chem invests 820 billion won in ESG bonds to convert renewable energy to reduce carbon dioxide emissions, constructs production processes using eco-friendly raw materials, expands electric vehicle battery materials such as cathode materials, expands polio vaccine quality control facilities, and prevents industrial accidents. It plans to use the full amount of financial support for improvement and replacement, and win-win with small and medium-sized partners.
LG Chem makes sustainability a top priority management task, and discovers business models that can provide innovative and sustainable solutions to the environment and society, such as supplying recycled plastics, biodegradable resins, biodiesel-based eco-friendly resins, and next-generation polio vaccines. ESG management is accelerating.
In addition, KRW 380 billion 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 bonds consist of 3 years of maturity of 350 billion won, 5 years of maturity of 270 billion won, 7 years of maturity of 200 billion won, 10 years of maturity of 260 billion won, and 15 years of maturity of 120 billion won, of which 3 years and 5 years , 7-year bonds will be issued as ESG bonds.
Interest rates for 3-year, 5-year, 7-year and 10-year bonds with maturities are expected to be similar to those of individual public interest rates, and 15-year bonds are expected to be set at 0.20%p lower than the individual public interest rates.
The fixed rate is finally set on February 18th.
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