Hyundai Capital Issues $650 Million Overseas ABS... Largest Ever

Average Maturity of 3 Years 6 Months
Issued in a Dual-Currency Combination Based on US Dollar and Singapore Dollar

[Asia Economy Reporter Ki Ha-young] Despite volatility caused by the novel coronavirus disease (COVID-19) pandemic, Hyundai Capital has attracted the largest-ever amount of overseas investment funds.

Hyundai Capital announced on the 29th that it successfully issued overseas asset-backed securities (ABS) worth $650 million (approximately 790 billion KRW).

This ABS was issued in two currencies, US dollars and Singapore dollars, targeting three global banks including Soci?t? G?n?rale. The average maturity is 3 years and 6 months, and currency and interest rate swaps were used to eliminate risks arising from exchange rate and interest rate fluctuations.

Global credit rating agency Fitch assigned the highest rating of 'AAA' to this ABS based on Hyundai Capital's strong external creditworthiness and the stability of the underlying assets. The raised funds are planned to be used for repaying existing borrowings and operating capital.

In particular, this issuance is the largest scale since Hyundai Capital began issuing overseas ABS in 2002. Hyundai Capital, which has continuously issued regularly in domestic and international capital markets over 70 times, reaffirmed its solid position as a regular issuer of asset-backed securities with this issuance.

Regarding Hyundai Capital's overseas ABS issuance, Kim Eun-su, Executive Director of the Asset Securitization Team at Soci?t? G?n?rale, said, "We have strong confidence in Korean auto finance product credits," and added, "The success of this securitization issuance is a result of reaffirming the trust of global investors."

A Hyundai Capital official explained, "Despite the ongoing global financial tightening, we succeeded in issuing the largest-ever asset-backed securities," and said, "This was possible because Hyundai Capital, leading the domestic auto finance market, was able to gain investor trust based on its high creditworthiness and asset safety."

This content was produced with the assistance of AI translation services.