SEOUL, May 4 (Yonhap) — LG Electronics Inc., South Korea’s major home appliance maker, said Tuesday it plans to raise 190 billion won (US$169 million) through its first-ever green note as the company eyes to use funds to bolster its environmental, social and governance (ESG) management.
The tech giant said it will use the proceeds from its green bond sale to upgrade its research facilities at LG Science Park in western Seoul to environment-friendly buildings.
The company expects the construction work to be completed by December 2024, at an estimated cost of 415.4 billion won.
A green bond is a special-purpose bond, limited to be used only to fund environmentally friendly activities.
The green bond issuance is part of LG’s 530 billion-won debt sale that includes 10-year and 15-year bonds.
Last month, LG launched a ESG committee to improve its corporate governance and transparency in management.