Hyundai Motor mulls upping green bond issuance on strong demand

Hyundai Motor Co. is said to be reviewing an option to double the size of its planned green bond offering from its initial offering of 300 billion won ($269.4 million) in response to fervid institutional appetite in confidence of its EV lineup.

The company’s first green bond offering drew explosive demand of 2.1 trillion won from institutions during the book building on Tuesday, making it oversubscribed by seven times, according to industry sources.

The coupon will likely come down from targeted band. Detailed offering size has yet to be disclosed.

Hyundai Motor has decided to issue green bonds for the first time to finance its ambitious green project on hydrogen and electricity fuel. It aims to increase its annual EV sales volume to 560,000 units and global EV market share to 10 percent by 2025.

Hyundai Capital, auto financing unit, earlier this week issued $600 million in five-year green bond in U.S. dollar denomination.

Hyundai Motor shares closed 2.08 percent higher at 245,500 won in Seoul trading on Wednesday.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]