Hyundai Capital Services issues $600 million global green bond

Hyundai Capital Services Inc, an affiliate of South Korea’s Hyundai Motor Group, has raised $600 million in green bonds.

The coupon of the five-year debt is set at 1.25 percent, or 92.5 basis points above the five-year U.S Treasury rate, said the company on Tuesday. The yield is 37.5 basis points lower than its initial guidance, and the lowest of all debts that the finance firm issued overseas.

The company will use the proceeds on loan services for Hyundai Motor and Kia’s green cars like electric and hydrogen vehicles.

Hyundai Capital Services said it received orders from some 250 institutional investors across the world, with bids exceeding the target by 8 times.

The company’s debt is rated BBB+ by Fitch Ratings.

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