Overseas investors have shown a keen interest in new bonds issued by Hyundai Capital Service Inc., a financial unit of South Korea's Hyundai Motor Group, financial sources here said Tuesday.
Hyundai Capital Services successfully raised US$700 million by
selling bonds maturing in five-and-a-half years. The bonds carry an
interest rate of 245 basis points above U.S. government debts.
Bookrunners of the bonds issuance were J.P. Morgan, Morgan Stanley, ING, Standard Chartered Bank and Royal Bank of Scotland. "The deal gathered an order book of about $4.8 billion from
some 300 accounts," an official at a global investment bank said,
asking for anonymity.
The official said the U.S. investors showed an especially
strong interest, as Hyundai Capital represents one of only a small
number of well-known auto-financing companies in Asia.
According to sources, the U.S. investors snapped up 65 percent
of the bonds, while European and Asian investors bought 14 percent
and 21 percent, respectively. By type, funds took up 69 percent,
insurance companies at 12 percent, private banks at 10 percent and
banks at 9 percent.
(Yonhap News)
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