SEOUL, Feb. 2 (Korea Bizwire) — Hyundai Capital Services Inc., South Korea’s leading auto finance company, said Tuesday that its has issued global green bonds worth US$600 million.
The five-year bonds, which were sold to overseas investors, carry an annual interest rate of 1.25 percent, or the yield on five-year U.S. Treasurys plus a spread of 92.5 basis points.
The interest rate is 37.5 basis points lower than the guidance rate and the lowest-ever rate that Hyundai Capital has offered to offshore investors.
Hyundai Capital said about 250 institutional investors across the global have expressed an intention to invest in the green bonds, which were about eight times oversubscribed.
Green bonds are meant to raise money to support environmental projects and other eco-friendly infrastructure schemes.
Hyundai Capital said the proceeds will be used to provide financing for electric, hydrogen, hybrid and other eco-friendly vehicles made by Hyundai Motor Co. and Kia Corp., South Korea’s top two automakers.
Hyundai Capital is the auto finance arm of Hyundai Motor Group, the world’s No. 5 automaker by sales whose flagships are Hyundai Motor and Kia.