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| Kia Optima Plug-in Hybrid / Courtesy of Kia Motors |
By Park Hyong-ki
Hyundai Capital has raised 300 billion won ($260 million) by issuing Korean won-denominated bonds from a group of institutional investors, the automobile financing company said Thursday.
The funds will be used to extend loans and leases to customers seeking to purchase Hyundai Motor or Kia Motors' electric, hydrogen and hybrid vehicles in installments.
This marks the first time for a local financial company to issue so-called "green bonds" here, the company added.
Korea Investment & Securities and KB Securities were the underwriters for Hyundai Capital's five-year bonds. Korea Investment was the lead manager of the 10-year bonds.
"Through the bond issuances, we were able to not only maximize synergy with the automobile companies, but also build our portfolio in environmentally friendly vehicle financing," said a Hyundai Capital spokesman.
The company said it will seek to issue more green bonds in the near future in an effort to improve the environment.
In 2016, Hyundai Capital issued green bonds worth $500 million overseas.
Its underwriters included Bank of America Merrill Lynch and Credit Agricole, marking the first time for a local company to issue such bonds abroad.
Hyundai Motor has a 59.68 percent stake in Hyundai Capital, with Kia Motors holding a 20.1 percent stake, according to Hyundai Capital's audit filing.
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