Hyundai Capital has issued green bonds worth 350 billion won to expand financial support for eco-friendly vehicles, including electric and hydrogen cars.
On September 4, Hyundai Capital announced the issuance of the green bonds in accordance with the K-Taxonomy guidelines. The K-Taxonomy is a classification system for green finance established by the government in 2022 to promote green finance in South Korea. With this issuance, Hyundai Capital's cumulative issuance of environmental, social, and governance (ESG) bonds in both domestic and international markets has reached 10.8 trillion won.
The bonds consist of 250 billion won in 3-year bonds and 100 billion won in 5-year bonds. The issuance rates were set at 2 basis points (1 basis point = 0.01 percentage points) lower than the average rates from private bond rating agencies for the 3-year bonds and 1 basis point lower for the 5-year bonds.
NH Investment & Securities and KB Securities served as the lead underwriters, with Kiwoom Securities, Korea Investment & Securities, iM Securities, and Mirae Asset Securities participating as joint underwriters.
Hyundai Capital plans to use the funds raised from this bond issuance to support financing for eco-friendly vehicles, including electric and hydrogen cars. The company is increasing the proportion of green assets within its automotive finance portfolio in line with the Hyundai Motor Group's expansion of eco-friendly mobility.
Lee Yong-seok, Chief Financial Officer of Hyundai Capital, stated, "As the number of customers purchasing eco-friendly vehicles, including electric cars, continues to rise, the proportion of green assets within our overall automotive finance portfolio is steadily increasing. We will continue to expand sustainable eco-friendly financial products and services."
* This article has been translated by AI.
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