Hyundai Capital Issues $700 Million in Overseas ABS

Utilizing Proceeds for ESG Bonds
"Positive Response in Europe... Demonstrating Competitiveness"

Hyundai Capital announced on August 14 that it has successfully issued $700 million (approximately 970 billion KRW) worth of overseas asset-backed securities (ABS) based on new car installment receivables.

Exterior view of Hyundai Capital building in Jung-gu, Seoul. Hyundai Capital

The average maturity of Hyundai Capital’s ABS is four years. The issuance was structured as a dual tranche, consisting of $450 million and 210 million euros (equivalent to $250 million).

Notably, the euro-denominated portion of the ABS will be classified as an Environmental, Social, and Governance (ESG) bond and will be used to support eco-friendly vehicle purchases and small business support initiatives.

Lee Youngseok, CFO of Hyundai Capital, stated, “By issuing $700 million in overseas ABS following last December’s issuance, we have demonstrated the company’s competitiveness in the global asset securitization market.” He added, “By issuing euro-denominated ESG bonds, which have recently attracted attention, we received a positive response from investors in the European funding market.”