LG Display Co. Friday decided to issue more bonds than what it initially planned to meet the stronger-than-expected demand for its debts on growing expectations for improvement in its earnings in the latter half of this year.

The company said in a regulatory filing on Friday it will issue 300 billion won ($269 million) worth of new bonds instead of previously announced 200 billion won.

The decision comes after its book building for institutional investors conducted on Wednesday attracted a combined 220 billion won from 17 institutional investors for its three-year bonds and a combined 330 billion won from 19 institutional investors for the five-year debts.

The coupon rate was set at 1.748 percent for the three-year bond and 1.858 percent for the five-year bond.

Despite uncertainties over LG Display’s performance, expectations for the company’s earnings in the third quarter have recently risen, said an unnamed official in the corporate bond market. On top of that, the company’s AA debt rating must have played a positive role in attracting investors more than expected, the official added.

“LG Display’s operating profit in the third quarter is estimated to reach 266 billion won, an unexpected surge from 44.3 billion in the second quarter,” said Kim Woon-ho, an analyst at IBK Securities. “There is every reason to expect LG Display’s fourth quarter earnings to reach the highest level this year.”

LG Display plans to use the proceeds to repay 295 billion won debts maturing in October and November. Given the fact that the coupon rate of these maturing debts was set between 3.350 percent and 4.510 percent, the borrowing cost at the company will decline by almost half by issuing the new debts.

By Koh Min-seo

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