Increased by 200 Billion Won Beyond Planned Scale Due to Investor Interest
Hyundai Capital has become the first financial institution to issue green bonds in accordance with the government's Korean-style Green Taxonomy (K-Taxonomy) guidelines.
On the 28th, Hyundai Capital announced that it had issued green bonds worth a total of 600 billion KRW. The 'K-Taxonomy' is a Korean-style green finance classification system that identifies which corporate management activities are environmentally friendly. From this year, 'financial services' have been included in the revised guidelines.
For this green bond issuance by Hyundai Capital, six securities firms including KB Securities, Kyobo Securities, Mirae Asset Securities, Korea Investment & Securities, Hi Investment & Securities, and Kiwoom Securities participated as joint underwriters.
As investor interest grew, Hyundai Capital increased the bond issuance size by 200 billion KRW from the original plan. The maturity structure of the bonds issued this time consists of 20 billion KRW for 2 years, 100 billion KRW for 2 years and 6 months, 70 billion KRW for 3 years, 60 billion KRW for 4 years, and 350 billion KRW for 5 years.
The funds raised through this will be invested in financial services for eco-friendly vehicles of Hyundai Motor Group.
NICE Credit Rating, which conducted the external review of the K-Taxonomy compliance for this bond issuance, stated, "It meets all activity criteria, recognition criteria, exclusion criteria, and protection criteria, making it suitable for the Korean-style green classification system," and explained, "This green bond issuance will contribute to reducing greenhouse gas emissions through the distribution of approximately 20,000 eco-friendly vehicles."
A Hyundai Capital official said, "Following the revision of the K-Taxonomy guidelines, Hyundai Capital's eco-friendly mobility strategy will gain more momentum," adding, "We will actively reflect the value of environmental friendliness throughout our management activities to contribute to achieving carbon neutrality and sustainable development goals, and strive to provide better benefits and services to consumers."
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