SYDNEY, Reuters South Korea39;s LG Electronics is aiming to raise up to 1 billion in a dollar bond deal, according to three sources with direct knowledge of the matter.

The company has mandated investment banks to work on a 3year and 5year dollar bond deal, according to a term sheet seen by Reuters on Thursday.

The sources declined to be identified discussing confidential information.

LG Electronics did not have immediate comment.

Initial price guidance for the 3year bond was 135 basis points over 3 year Treasuries while for the 5year bond, it was 150 basis points over 5 year Treasuries.

The company intends to use the cash raised from the 3year bond for general operations, including investment, and refinancing maturing debt, the term sheet showed.

The fiveyear bond is a sustainable bond and proceeds will spent on green and social projects.

LG Electronics said last year it plans to become a global top 10 company in vehicle components by more than doubling revenue to 20 trillion won by 2030. It also plans to strengthen its service platforms on its home appliance and TV businesses that generate recurring profits, such as media subscriptions and rentals

Reporting by Scott Murdoch in Sydney and Joyce Lee in Seoul; Editing by Himani Sarkar and Edwina Gibbs

Source Reuters