[Funding] Hyundai Commercial Secures 100 Billion KRW Loan from Woori Investment & Securities

[Asia Economy Reporter Lim Jeong-su] Hyundai Commercial, the installment finance company for commercial vehicles under Hyundai Motor Group, has raised 100 billion KRW in funding with support from Woori Bank.

According to the investment banking (IB) industry on the 18th, Hyundai Commercial borrowed 100 billion KRW from a special purpose company (SPC) established under the management of Woori Bank. After Woori Comprehensive Financial Services executed the loan to Hyundai Commercial, the SPC acquired the loan principal and interest as underlying assets and issued short-term notes.

The loan maturity is three years. Although the principal is to be repaid in a lump sum at maturity, early repayment is possible if the SPC consents in advance.

Woori Bank provided credit support to the SPC. If Hyundai Commercial fails to repay the loan on time, making it difficult to redeem or refinance the short-term notes, Woori Bank will supply the necessary liquidity.

Hyundai Commercial’s main funding method is issuing asset-backed bonds. On the 8th, it issued bonds worth 110 billion KRW, and previously issued bonds worth 120 billion KRW in September and 250 billion KRW in August, respectively.

In a bulk registration statement submitted to the Financial Supervisory Service in June, Hyundai Commercial announced plans to issue asset-backed bonds totaling 1.5 trillion KRW from early July this year to early July next year.

An IB industry official said, "It is understood that Hyundai Commercial took out a loan from Woori Comprehensive Financial Services due to additional funding needs beyond the planned asset-backed bond issuance amount submitted in the bulk registration."

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