Hyundai Capital Issues Green Bonds Worth 300 Million Swiss Francs

3-Year Fixed Interest Rate
First Overseas Public Bond Issuance by Domestic Private Companies Since COVID-19

[Asia Economy Reporter Ki Ha-young] Hyundai Capital has successfully issued its third overseas green bond, following those in 2016 and 2019.

Hyundai Capital announced on the 18th that it issued an overseas green bond worth 300 million Swiss francs (CHF) yesterday afternoon. The issuance interest rate was set at the 3-year Swiss mid-swap rate plus 135 basis points.

This issuance marks the first overseas public bond issuance by a domestic private company since the COVID-19 pandemic. It is interpreted that Hyundai Capital succeeded in securing strong demand despite global volatility caused by the infectious disease outbreak. A Hyundai Capital official explained, "By issuing a 3-year maturity green bond, we secured differentiated demand by maturity and attracted the interest of Swiss investors who prefer socially responsible investments."

Hyundai Capital plans to use the funds raised from this bond issuance to provide installment financing services for eco-friendly vehicles such as electric cars, hydrogen cars, and hybrid vehicles from Hyundai and Kia Motors.

Since issuing the first Samurai bond by a domestic private company in 2005, Hyundai Capital has expanded its investor base by entering major global capital markets including Eurobonds, global bonds, Swiss francs, and Kangaroo bonds. In the Swiss market, since its first entry in 2010, it has successfully issued bonds eight times totaling CHF 1.98 billion (approximately 2.3 trillion KRW).

A company official said, "Since 2010, we have continuously supplied liquidity to Swiss investors and strengthened our market position. As a result, through trust with local investors, we were able to successfully complete a large-scale bond issuance despite the global economic downturn caused by COVID-19."

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