In response to the overwhelming response from investors, South Korea’s LG Electronics Inc. will issue 460 billion won ($411 million) worth in fresh multiple-tranche debt issues, doubling the initially planned scale of 250 billion won. The debts will be priced on September 6.

According to investment bank industry sources on Thursday, LG Electronics, rated AA0, will issue short- and long-term debts worth 460 billion won. The firm earlier tapped demands in institutional investors for 250 billion won worth of debts, and it ended in oversubscription by attracting 930 billion won in total.

The company drew 390 billion won for the three-year bond worth 80 billion won and 240 billion won for the five-year bond worth 80 billion won. The response to the seven-year and 10-year debts was also strong even as the general appetite for long-term debts weakened amid the expectation of another interest rate hike by the U.S. The firm attracted 150 billion won for the seven-year bond worth 50 billion won and 150 billion won for the 10-year bond worth 40 billion won.

Buoyed by the strong demand from the market, the company upped the debt issue plan to 460 billion won from original 250 billion won. The seven- and 10-year debts were even more popular than expected, said a debt capital market official who asked to be unnamed.

Under the revised debt issue plan, the electronics maker will issue three-year bond worth 90 million won, five-year debt bond worth 90 million won, seven-year bond worth 130 billion won, and 10-year bond worth 150 billion won.

Meanwhile, LG Electronics plans to use the funds for operation and repay bonds worth 290 billion won whose maturity date is arriving soon. The newly issued debts with yields set between 1.469 percent and 2.630 percent will cover the existing debt obligation with interest rates between 3.163 percent and 4.320 percent, market observers say.

The tech giant earlier this year had planned offerings of 350 billion won in February but with an order book of 640 billion won, it ended up expanding the issues to 450 billion won.

By Ko Min-suh

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