LG readies bonds for Swiss investors
LG Electronics announced yesterday it is issuing corporate bonds in Switzerland worth 215 million Swiss francs ($223.5 million).
This is the first time since 2007 that the electronics company has issued corporate bonds outside of Korea.
It is also the largest bond issuance in this currency by an Asian electronics maker since 1996.
The nominal interest rate is 2 percent and the bonds mature after four years and five months, in December 2016.
The company said the issuance will be completed early next month after contracts are signed with investors.
LG was initially considering issuing a smaller sum worth 150 million Swiss francs but decided to enlarge this after receiving positive feedback from an investor relations presentation last month.
Starting on May 29, it held a two-day presentation in Zurich where it displayed a wide range of strategic products including its new 3-D Smart TV and long-term evolution smartphones.
“Our successful issuance of corporate bonds in Swiss francs despite the low interest rate indicates that the global market has recognized LG’s potential,” said an LG official.
“In order to secure a stable capital inflow, we will try to diversify our loan sources.”
LG was once competing neck and neck with archrival Samsung but has struggled in recent years because it entered the smartphone business relatively late.
The company has in recent years been aggressively launching new smart gadgets while also reorganizing its business portfolio in hope of recovering its lost market share.
By Lee Ho-jeong [firstname.lastname@example.org]
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