Hyundai Capital Issues KRW 350 Billion in Green Bonds

KRW 250 Billion in 3-Year Bonds, KRW 100 Billion in 5-Year Bonds
Funds to Be Used for Financial Services Supporting Eco-Friendly Vehicles Including EVs

On September 4, Hyundai Capital announced that it has successfully issued KRW 350 billion in won-denominated green bonds in accordance with the K-Taxonomy Guide.

The exterior of the Hyundai Capital headquarters building in Jung-gu, Seoul. Hyundai Capital

The K-Taxonomy is a guideline announced by the government in 2022 to promote green finance. It is a Korean green finance classification system that provides clear principles and standards for eco-friendly activities within corporate management.

NH Investment & Securities and KB Securities served as the lead managers for this issuance, with four co-underwriters participating: Kiwoom Securities, Korea Investment & Securities, iM Securities, and Mirae Asset Securities.

This green bond issuance consists of KRW 250 billion in three-year bonds and KRW 100 billion in five-year bonds. The issuance rates were set lower than the average market rate by 2 basis points (bp; 1bp = 0.01 percentage points) for the three-year bonds and 1bp for the five-year bonds. Hyundai Capital explained that this demonstrates, once again, its strong credibility and sound financial standing within the domestic bond market.

Recently, Hyundai Capital has been rapidly increasing the proportion of 'green assets' within its total auto installment assets, in line with Hyundai Motor Group's eco-friendly mobility strategy. Hyundai Capital plans to use the funds raised through this green bond issuance to strengthen financial support for eco-friendly vehicles, including electric vehicles and hydrogen vehicles. Furthermore, by utilizing the funds to expand the supply of eco-friendly vehicles and reduce carbon emissions, and by leveraging its accumulated green assets to facilitate further successful green bond issuances, the company aims to reinforce the virtuous cycle of ESG (Environmental, Social, and Governance) finance.

Youngseok Lee, CFO and Head of Finance at Hyundai Capital, stated, "As the number of customers purchasing eco-friendly vehicles, including electric vehicles, continues to grow, the share of green assets within Hyundai Capital's total auto finance assets is also steadily increasing," adding, "We will continue to actively expand sustainable, eco-friendly financial products and services to further practice ESG management."

Meanwhile, Hyundai Capital was the first private company in Korea to issue a green bond in 2016. In 2023, it became the first domestic financial company to introduce a green bond compliant with the K-Taxonomy Guide and also issued Korea's first public sustainable linked bond (SLB). With this latest issuance, Hyundai Capital's cumulative ESG bond issuance, both domestically and internationally, has increased to KRW 10.8 trillion.

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