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LG Chem, Ltd.’s Issuance of USD 1 Billion Green Bonds

2021-07-07

Lee & Ko advised LG Chem, Ltd. on a USD 1 billion global green bonds issuance. Green bonds are special purpose bonds whose use is limited to investments in infrastructure and eco-friendly projects such as those relating to climate change and renewable energy.

 

The bonds were issued in two tranches, one for USD 500 million with a 5-year maturity and the other for USD 500 million with a 10-year maturity.

 

Both tranches had fixed interest rates, with the 5-year maturity tranche having an interest rate of 1.48% per annum after adding 0.6% to the 5-year U.S. Treasury yield of (0.88%), and the 10-year maturity tranche having an interest rate of 2.38% per annum after adding 0.9 % to the 10-year US. Treasury yield (1.48%). This was the lowest spread among global bonds issued by private issuers of Korea.

 

Drawing upon years of experience advising on offshore bond issuance deals, Lee & Ko effectively advised on the entire transaction process, reviewing the transaction structure of the issuance, conducting legal due diligence, negotiating contracts, and more.

 

Partners Hyunjoo Oh and Seung-A Hyun, and associates Dong Yon Kim, Sang Hyun Ahn, Sarah Kang, and Cheong Su Noh, participated in this transaction.

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