South Korea’s LG Electronics Raises $800 Million Global Sustainability Bond

LG Electronics (LG) has successfully issued an $800 million global bond, marking its first venture into the market in 17 years. Despite the increasing turbulence in the global economy, LG managed to achieve a negative New Issue Premium (NIP), signaling strong interest from international investors.

The bonds are denominated in U.S. dollars and are split into two categories: a $500 million bond maturing in 3 years and a $300 million bond maturing in 5 years, with the latter being designated as a Sustainability Bond. Additionally, the extra interest rate, or spread, is set at 95 basis points (bp) and 110bp above the US Treasury bond interest rate for the 3-year and 5-year bonds respectively, 40bp lower than the initially proposed spread.

LG received a significant investment order totaling approximately $9.4 billion (around 12 times the size of the issuance) from a total of 339 institutions. This accomplishment, based on the maximum order book, positions LG’s bond issuance as the most successful among Korean corporate bonds in 2024, resulting in a negative NIP.

By ESG News

Published on April  19, 2024

For more details: https://esgnews.com/south-koreas-lg-electronics-raises-800-million-global-sustainability-bond/