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

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

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.


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

Latest CleanTechnica TV Video


I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
 
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
 
Thank you!

Advertisement
 
CleanTechnica uses affiliate links. See our policy here.

Saurabh

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

Saurabh has 1037 posts and counting. See all posts by Saurabh