[Market Now] Hyundai Wia raises W130b in bond issues

Hyundai Wia, a listed auto parts-maker of Hyundai Motor, said Tuesday that it has issued bonds worth 130 billion won ($114 million) in total to refinance its debt and pay for materials supplied from its partners.

Korea Investment & Securities, KTB Investment, HMC Investment, Shinhan Investment and Hana Financial Investment acquired Hyundai Wia’s AA-graded bonds worth 100 billion won with a maturity period of April, 2021. 

Hyundai Wia said in its regulatory filing that it will use the proceeds of 100 billion won to refinance its debt due this and next month.

The auto parts-maker also issued AA-graded bonds worth 30 billion won to institutional investors including Korea Investment and KTB Investment. The bonds mature in April 2023.

The company will use 30 billion won to pay for materials supplied from Hyundai PowerTech, Hankook Tire, Nexen Tire, Korea Flange and Schaeffler Korea.

Hyundai Motor is the biggest shareholder with a 25 percent stake in Wia, whose majority of sales come from producing automobile parts and modules.

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