LG, SK groups planning large bond issues

[THE INVESTOR] LG Group and SK Group companies are set to issue large amounts of corporate bonds within the year.

Much of the funds raised will be used to cover maturing bonds, while companies with no maturing bonds are capitalizing in on the low interest rates, industry watchers say.

According to data provider FnGuide, LG Group companies’ bonds maturing within the year have a combined value of 1.5 trillion won (US$1.34 billion), while the figure for SK Group companies stands at 2.1 trillion won. 

LG Group headquarters in Seoul

LG Group’s trading arm LG International will be the first to issue new bonds, followed by LG Electronics. LG International will issue 100 billion won in bonds on Sept. 5, while LG Electronics will issue 300 billion won the following day.

LG Electronics has about 190 billion won worth of bonds maturing this year, while LG International’s bonds will be used to raise operating funds.

LG Display and the mobile carrier LG Uplus are also reported to planning bond issues.

From SK Group, SK Incheon Petrochem is planning an 80 billion won bond issuance on Sept. 5, and SK Holdings C&C is said to be planning to raise between 300 billion and 400 billion won through bonds on Sept. 7.

SK E&S is set to issue 340 billion won worth of bonds on Aug. 29.

By Choi He-suk (cheesuk@heraldcorp.com)