IANS | 19 Apr, 2024
South Korea's tech giant LG Electronics said on Friday it has successfully raised $800 million in a dollar bond deal.
The
bonds, denominated in US dollars, were issued in two tranches: a
three-year bond worth $500 million and a five-year sustainability bond
totaling $300 million, according to LG Electronics.
The interest
rates for these bonds were set at 95 basis points and 110 basis points
over the U.S. Treasury rates of the same maturity for the three-year and
five-year tranches, respectively.
LG Electronics said these rates
were 40 basis points lower than the initially proposed spread,
underscoring the strong demand from investors, reports Yonhap news
agency.
It is the South Korean company's first public foreign bond
deal in 12 years and its first dollar-denominated bond deal in 17
years.
LG Electronics said its solid performance and financial
stability have appealed to global investors despite global market
challenges.
LG Electronics said the proceeds from the three-year
bond will be used for strengthening its future competitiveness,
including research and development and facility investments, while funds
raised from the five-year sustainability bond will be spent on green
and social projects.
