Return to the Public Offering Market After 3 Years... Hyundai Capital Issues 1 Trillion KRW ABS

New Car Installment Receivables-Based
Largest Industry Issuance in 10 Years

Hyundai Capital has issued asset-backed securities (ABS) worth 1 trillion KRW in the public market for the first time in three years.

On the 23rd, Hyundai Capital announced that it successfully issued 1 trillion KRW worth of ABS based on new car installment receivables. This is one of the largest ABS issuance volumes by a specialized credit finance company in the past 10 years. The joint lead underwriters for the issuance are Korea Investment & Securities and KB Securities.

Hyundai Capital entrusts new car installment receivables to Citibank (trustee), and Citibank delivers beneficiary certificates worth 1 trillion KRW based on the trust assets to a special purpose company (SPC). The SPC then issues ABS corresponding to the amount.

According to maturity, the structure consists of ▲ 30 billion KRW each from 17 months (1-1 tranche) to 36 months (1-20 tranche) ▲ 20 billion KRW each from 37 months (1-21 tranche) to 52 months (1-36 tranche) ▲ 10 billion KRW each from 53 months (1-37 tranche) to 60 months (1-44 tranche).

Lee Hyung-seok, Chief Financial Officer (CFO) of Hyundai Capital, said, "This ABS issuance is a meaningful achievement confirming investors' high evaluation of Hyundai Capital ABS despite returning to the domestic public market after three years. Following last year's largest scale (1.7 trillion KRW) and the highest number (three times) of ABS issuances in the specialized credit finance industry, Hyundai Capital is the only specialized credit finance company to successfully issue a mega-scale ABS of 1 trillion KRW in the public market this year as well."

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