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[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Display will raise an additional 650 billion won with syndicated loan. Following the KRW 1.4 trillion worth of paid-in capital increase in March, the company will secure KRW 2 trillion this year alone.
According to the investment banking (IB) industry on the 4th, LG Display recently signed an syndicated loan borrowing contract worth 650 billion won with Shinhan Bank, the Korea Development Bank and the Export-Import Bank of Korea.
syndicated loan is a collective loan in which a number of financial companies lend money on the same terms. Borrowing terms, loan procedures, and loan limits can be discussed with various banks at once, and loans can be made at low-interest rates for a long time to efficiently raise large-scale funds.
The borrowing rate is 5.4%, which adds 1.6% to the three-month transferable deposit certificate (CD) interest rate, which is a two-year installment repayment condition with a three-year grace period. LG Display raised 200 billion won with syndicated loan at the end of last year, and the remaining 450 billion won will be secured in the first half of this year after the paid-in capital increase is completed.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
