[Market Now] Korea Investment & Securities invests in Hyundai Capital bonds

Korea Investment & Securities has purchased bonds issued by Hyundai Capital Services, according to the auto financing company’s disclosure filing Wednesday.

Hyundai Capital said that it has issued bonds worth 10 billion won through its manager Standard Chartered Bank Korea, and Korea Investment & Securities acquired all the bonds with a yield of 2.058 percent. The bonds’ maturity date is Dec. 21, 2020. 

Korea Investment can demand a “put option” by redeeming its bond investments earlier than the maturity period should Hyundai Capital’s credit rating falls below BBB by one of three local credit rating agencies -- Korea Investors Service, Nice Investors Service and Korea Ratings.

Hyundai Capital will finance its operations with the capital raised from the bond issuance. The auto financing company is owned by Hyundai Motor and IGE USA Investment, an investment arm of GE Capital.

By Park Hyong-ki (hkp@heraldcorp.com)