'Name Change' Hyundai Corporation, Successful Demand Forecast for Corporate Bonds

Demand Forecast for 30 Billion KRW 3-Year Corporate Bond Issue Attracts Over 5 Times Subscription

[Asia Economy Reporter Kim Hyewon] Hyundai Corporation (formerly Hyundai General Trading), which has issued its first corporate bonds since changing its name, attracted more than 166 billion KRW in funds, achieving success in the demand forecast.

According to the financial investment industry on the 21st, Hyundai Corporation conducted a demand forecast to issue 30 billion KRW of 3-year corporate bonds on the 27th of this month, resulting in a total of 166 billion KRW in funds, more than five times the amount.

Hyundai Corporation also issued 50 billion KRW in corporate bonds last October, and despite the investment sentiment being subdued due to the spread of COVID-19 at the time, orders amounting to 130 billion KRW, about three times the target amount (50 billion KRW), were received.

This time, Hyundai Corporation proposed an interest rate up to 0.4% above the average market rate for the same credit rating (credit rating A-), but investors filled the subscription at a level lower than the average market rate for the same rating during the demand forecast. Due to strong demand, Hyundai Corporation is considering increasing the issuance up to 50 billion KRW.

The funds raised through the corporate bond issuance will be used for refinancing corporate bonds maturing this year and for operating funds.

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