[데일리포스트=송협 선임기자] On the 15th, LG Chem announced that it will issue a total of 1.2 trillion won in corporate bonds, including ESG bonds of 820 billion won and general corporate bonds of 380 billion won.
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 investments such as environment, social, and governance.
LG Chem invested 820 billion won in ESG bonds to △ invested in renewable energy conversion to reduce carbon dioxide emissions △ Constructed a production process using eco-friendly raw materials △ Expanded electric vehicle battery materials such as cathode materials △ Expanded polio vaccine quality management facilities △ Industrial accident prevention facilities Improvement and replacement △ We plan to use the full amount of financial support for win-win 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, such as 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 concrete measures for accelerating ESG management in all business areas and implement them, further strengthening our position as a leading company in the field of sustainability.
In addition, KRW380 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, 7 years of maturity of 200 billion, 10 years of maturity of 260 billion, and 15 years of maturity of 120 billion, of which 3, 5, and 7 Annual 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 individual public interest rates. The fixed rate is finally set on February 18th.
Copyright © Global News Media Channel Daily Post Unauthorized reproduction and redistribution prohibited