Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Hyundai Card issues W240 bil. in green bonds
By Kim Bo-eun
By Kim Bo-eun
Hyundai Card issued 240 billion won ($198.23 million) in green bonds, the firm said Friday. It is the first card firm here to issue Korean won-denominated green bonds.
According to the card issuer, it raised funds from institutional investors through the bonds with a maturity of two to seven years.
Green bonds are issued to raise capital and investment for new and existing projects with environmental benefits.
The funds will be used for financial services related to Hyundai Motor and Kia Motors' electric, hydrogen and hybrid vehicles, the card firm said. Hyundai Card plans to provide card payment services for purchases of Hyundai and Kia's eco-friendly vehicles.
According to the card issuer, it has implemented a system that can estimate demand for green bonds. It said it was meaningful in that it raised more than the 200 billion won it had planned to raise through the bond, despite uncertainties in the market.
Hyundai Motor Group's financial affiliates are expanding their role as suppliers in the domestic environment, social and governance (ESG) bond market. In April, Hyundai Capital issued 300 billion won in green bonds.
ESG bonds are aimed at financing activities in environmental and social responsibility and governance improvement.
Financial holding companies and banks had mainly been involved in the ESG bond sector, but card issuers are showing increasing interest amid growing demand from institutional investors.
Card firms have been joining the trend of issuing ESG bonds this year, but Hyundai's are the largest in scale.
Shinhan Card said earlier this week it issued 100 billion won of ESG bonds with an average maturity of 4.6 years and a coupon rate of over 1.4 percent.
In April, Woori Card issued 100 billion won in ESG bonds, becoming the first card issuer here to issue such bonds.