LG Chem floats US$1 bln in green bonds

SEOUL, June 29 (Yonhap) — South Korea’s leading chemicals maker LG Chem Ltd. said Tuesday it has issued global green bonds worth US$1 billion to finance more investments in eco-friendly businesses.

LG Chem said the proceeds will be used to provide financing for such environmentally friendly materials as batteries, recycling of used plastic and solar power.

Green bonds are meant to raise money to support environmental projects and other eco-friendly infrastructure investments.

The debt sale comes after LG Chem sold $1.56 billion worth of green bonds in 2019, becoming the world’s first chemical company to do so.

In February this year, it floated 800 billion won ($707 million) worth of environment, social and governance (ESG) bonds, or a type of sustainability debt offering aimed at financing corporate activities in environmentally friendly and sustainable projects.

“The successful sale of green bonds shows global investors’ positive assessment of LG Chem’s sustainable business structure and its future value,” a senior company official said. “LG Chem will make efforts to boost corporate value and prepare for its qualitative growth through massive investments in the ESG sector.”

LG Chem said it has won the lowest spread among local issuers of overseas bonds on the back of stable ratings from global ratings agencies.