Connect with us

Hi, what are you looking for?


Green Economy

Hyundai Launches $500 Million Green Bond To Push Hybrid Car Funding

A subsidiary of Korean automaker Hyundai Motor Company has issued the country’s first corporate green bond in order to facilitate financing hybrid cars.

Hyundai Capital Services, auto financing and leasing subsidiary of Hyundai, recently launched green bonds worth $500 million. The bond matures in 5 years and has a coupon rate of 2.875%. The proceeds from the green bond shall be used to finance car loans for hybrid cars.

The green bond issue attracted significant interest from global investors. Hyundai Capital Services received orders for $1.2 billion investment against the bond issue of $500 million. Around 53% of the investors were from the US and Europe, Middle East and Africa, while the rest were from Asia.

Fund managers were the largest buyers in the bond issue, comprising of 45% of the total investors. Banks and corporates represented 19% and 15%, respectively, of the total investors. Private banks comprised of 13% of the investors while the balance 9% were pension funds and insurance companies.

This is only the third green bond issued by an entity in South Korea. The Export-Import Bank of Korea (Kexim) had raised $400 million, in February this year, offering investors bonds for a 5-year period with semi-annual coupon rate of 2.125%. The offer met with overwhelming response from prospective investors who were willing to pour in $1.1 billion, or about three times the offer size.

Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

An avid follower of latest developments in the Indian renewable energy sector.


You May Also Like

Clean Power

I recently interviewed Assaad Razzouk, CEO of Gurin Energy and host of “The Angry Clean Energy Guy” podcast, for CleanTech Talk, and — wow...


After reporting on top electric vehicle sales in 10 European countries, a reader indicated it would be even more interesting to see the combined...


April sales figures are in for electric vehicle models in 10 European countries — Norway, the Netherlands, Spain, France, Germany, Switzerland, Finland, Ireland, Sweden,...


Hyundai Group says it will invest $7.4 billion to manufacture electric vehicles in the US.

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.