Mercedes-Benz Financial issues 70 billion won bonds

Mercedes-Benz Financial Services Korea said Friday it had issued a corporate bond of 70 billion won ($63 million) with two year tenor and fixed coupon of 2.457 percent per annum.

According to the company, the proceeds of the bond ― the seventh of its kind ― will be used solely for financing vehicles of Mercedes-Benz customers in Korea.

Standard Chartered Securities Korea was assigned as lead manager and Bookook Securities was named as underwriter for the transaction.

“The company achieved very attractive pricing and will pass on any cost saving to its customers,” Adi Ofek, managing director of the Korean unit of Mercedes-Benz Financial Services, said in a statement.

“Our vision is to make customers our lifelong partners. We will continue to offer innovative financing and leasing products to the Korean market.”

The company’s portfolio size exceeded 1.5 trillion won in September and continues to grow, officials said. With the repetitive issuance of corporate bonds, the company has been expanding its presence in Korea.

(jylee@heraldcorp.com)