Battery manufacturer LG Energy Solution has raised $1 billion through its inaugural global green bonds.

The funds raised will be used to expedite investments in the company’s global battery production network.

The bond issuance consists of a three-year bond worth $400 million and a five-year bond valued at $600 million.

The three-year bond attracted orders from 114 institutional investors, while the five-year bond saw interest from 186 investors, resulting in a total order volume five times greater than the bond issuance size.

LG Energy said the successful bond issuance reflected the strong confidence in the company’s growth prospects, its active investment strategies, and the implementation of the Inflation Reduction Act.

During the first quarter of this year, the company said it had allocated KRW6.3 trillion (~$4.75 billion) for capital expenditures in global battery production the previous year and is planning to increase this year’s investment by over 50%.

LG Energy Solution said it was planning to make substantial investments to expand its product portfolio in electric vehicle (EV) batteries, energy storage systems (ESS), and other areas.

The company intends to triple its revenue in ESS over the next five years.

As of June 2023, LG Energy Solution’s total order backlog has reached KRW440 trillion (~$331.56 billion).

In May, LG Energy Solution and Hyundai Motor Group announced a joint venture to manufacture EV battery cells in the United States. The joint venture will be in Bryan County, Savannah, Georgia.

Earlier, LG Energy Solution had announced plans to invest roughly KRW7.2 trillion (~$5.5 billion) to build a battery manufacturing complex in Arizona, U.S. The investment is more than four times the amount LG had initially announced to manufacture cylindrical EV batteries in the same location.