Hyundai Capital's Strategic Move Amidst Martial Law

In a bold financial maneuver, Hyundai Capital has successfully issued $500 million in global bonds on January 15, marking its first issuance in a year. This event is particularly significant as it comes in the wake of martial law declared early last month, positioning Hyundai Capital as the first domestic private company to achieve such a feat under these challenging conditions.

Details of the Bond Issuance

The global bond issued by Hyundai Capital is a 3-year fixed-rate bond, with an issuance rate linked to the U.S. 3-year Treasury yield plus 80 basis points. The spread was reduced by 25 basis points from the initial guidance, showcasing strong investor confidence in the company's financial stability.

Recognition and Future Prospects

Following an A-grade rating upgrade from major global credit rating agencies last year, Hyundai Capital's financial health and lower risk profile have made its bonds more attractive to investors. Lee Hyung-seok, executive vice president and CFO of Hyundai Capital, expressed optimism about the company's future in the global funding market, emphasizing a commitment to a systematic funding strategy and a diverse, stable funding system.

Overcoming Challenges

Despite the significant political and economic implications of martial law in South Korea, including disruptions in financial markets and investor confidence, Hyundai Capital's successful bond issuance underlines its robust financial strategy and resilience.