Hyundai Capital Services Issues KRW 350 Billion in Green Bonds, Expanding Eco-Friendly Vehicle Financing

[Financial News] Hyundai Capital Services has issued KRW-denominated green bonds worth KRW 350 billion that comply with the K-Taxonomy. The company plans to use the proceeds to expand financing for eco-friendly vehicles while strengthening its position in the ESG bond market.
Hyundai Capital Services announced on the 4th that it had successfully issued KRW 350 billion in KRW-denominated green bonds under the K-Taxonomy guidelines.
The bonds comprise KRW 250 billion in three-year notes and KRW 100 billion in five-year notes. Their issuance yields were set 2 basis points and 1 basis point below the evaluated market yields, respectively. The successful issuance at rates below the evaluated market yields was seen as evidence of the high level of confidence in Hyundai Capital Services in the domestic bond market.
NH Investment & Securities and KB Securities served as lead managers. KIWOOM Securities, Korea Investment & Securities, iM Securities, and Mirae Asset Securities participated in the joint underwriting group.
The proceeds will be used to provide financing for eco-friendly vehicles, including electric and hydrogen-powered vehicles. In line with Hyundai Motor Group’s eco-friendly mobility strategy, Hyundai Capital Services is steadily increasing the share of green assets in its auto installment-financing portfolio.
Hyundai Capital Services plans to establish a virtuous cycle by expanding eco-friendly vehicle financing, contributing to carbon-emissions reductions and the wider adoption of eco-friendly vehicles, while continuing to issue green bonds based on its accumulated green assets.
Lee Young-seok, chief financial officer of Hyundai Capital Services, said, "As the number of customers purchasing eco-friendly vehicles, including electric vehicles, continues to grow, the share of green assets in our total auto-financing assets is also steadily increasing." He added, "We will continue to actively expand sustainable eco-friendly financial products and services and put ESG management into practice."
With this issuance, Hyundai Capital Services’ cumulative domestic and overseas ESG bond issuance increased to KRW 10.8 trillion.
[email protected] Hong Ye-ji Reporter