Shin Hak-cheol, vice chairman and CEO of LG Chem / Courtesy of LG Chem

By Baek Byung-yeul

LG Chem issued green bonds worth $300 million to raise funds to improve its capability in materials for rechargeable batteries such as cathodes and separators, the company said Friday.

The company said it succeeded in issuing global green bonds ― a type of international bond issued and distributed in the global financial market.

"It is a body that is limited in its use in eco-friendly projects and infrastructure investments such as climate change and renewable energy," the company said in a statement.

LG Chem has revealed that it is making efforts to strengthen its business competitiveness after spinning off its battery cell-manufacturing subsidiary, LG Energy Solution.

The company said it would invest 10 trillion won ($7.7 billion) by 2025 in battery materials, eco-friendly plastic materials and the development of new drugs.

In the first quarter of 2021, it announced that it will implement 4 trillion won worth of facility investments every year.

To that end, the company is expected to secure 3.5 trillion won worth of investment funds this year alone by issuing green bonds and borrowing facility loans.