SOUTH Korea’s LG Electronics is aiming to raise up to US$1 billion in a US dollar bond deal, according to three sources with direct knowledge of the matter.

The company has mandated investment banks to work on a three-year and five-year US dollar bond deal, according to a term sheet seen by Reuters on Thursday (Apr 18).

The sources declined to be identified discussing confidential information.

LG Electronics did not have immediate comment.

Initial price guidance for the three-year bond was 135 basis points over three-year Treasuries while for the five-year bond, it was 150 basis points over five-year Treasuries.

The company intends to use the cash raised from the three-year bond for general operations, including investment, and refinancing maturing debt, the term sheet showed.

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The five-year bond is a sustainable bond and proceeds will spent on green and social projects.

LG Electronics said last year it plans to become a global top 10 company in vehicle components by more than doubling revenue to 20 trillion won (S$18 billion) by 2030. It also plans to strengthen its service platforms on its home appliance and TV businesses that generate recurring profits, such as media subscriptions and rentals. REUTERS