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by IANS |
Seoul, April 19 (IANS) 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.
