Skip to content
  • KOSPI 2746.63 +0.81 +0.03%
  • KOSDAQ 905.50 -4.55 -0.50%
  • KOSPI200 374.63 +1.41 +0.38%
  • USD/KRW 1347.5 -3.5 -0.26%
  • JPY100/KRW 890.53 -1.9 -0.21%
  • EUR/KRW 1453.14 -4.39 -0.3%
  • CNH/KRW 185.76 -0.27 -0.15%
View Market Snapshot
Corporate bonds

Hyundai Motor's Indonesia unit issues $300 mn bond

By Apr 28, 2021 (Gmt+09:00)

1 Min read

Hyundai Motor's newly released all-electric vehicle, the IONIQ 5
Hyundai Motor's newly released all-electric vehicle, the IONIQ 5

PT Hyundai Motor Manufacturing Indonesia (HMMI) has raised $300 million in a five-year bond sale to fund the construction of its first production line in the Southeast Asian country.

The bond was issued at one percentage point above the five-year US Treasury yield, after drawing $2.7 billion in bids from 170 institutions, according to investment banking sources on Apr. 28.

The yield was lower than HMMI's proposed 1.35 percentage points plus the benchmark. The new debt, rated BBB+, is guaranteed by parent Hyundai Motor Co. In comparison, Hyundai Motor is rated Baa1 and BBB+ by Moody's and S&P, respectively.

BNP Paribas, Citigroup Global Markets and HSBC underwrote the bond issue.

The Indonesian unit was established in 2019 as Hyundai Motor's eighth overseas production base, into which the South Korean carmaker is planning to pump a total of $1.55 billion to build a production facility with an annual capacity of 150,000 units. It plans to bulk up the capacity to 250,000 units down the road.

Write to Hyun-il Lee at hiuneal@hankyung.com
Yeonhee Kim edited this article.
Comment 0
0/300