LG Chem raising $2 billion in exchangeable bonds

SEOUL (Reuters) – South Korea’s LG Chem Ltd is raising $2 billion in bonds that will exchange for LG Energy Solution Ltd shares, according to a regulatory filing on Tuesday.

The bonds will be sold in five and seven year tranches, the company said, raising $1 billion each.

The five-year bond has a coupon range of 0.75% to 1.25% while the longer dated bond has 1.35% to 1.85% range, according to the filing.

LG Chem said it plans to use the newly raised $2 billion to finance its facility investment and operations for businesses, including battery-related materials and drug developments.

The bonds will be exchangeable into common shares of LG Energy Solution.

(Reporting by Scott Murdoch in Sydney and Heekyong Yang in Seoul; Editing by Himani Sarkar and Louise Heavens)