이 기사는 2020년 02월 10일 08:00 thebell 에 표출된 기사입니다.

Hyundai Capital America (HCA), a subsidiary of South Korea’s Hyundai Motor Group, has raised a total of $2 billion from its issuance of dollar-denominated global bonds under RegS/144a format.

HCA announced and started marketing its global bond issue on February 5. The offering included three-tranche fixed rate bonds, with 3-year, 5-year and 7-year maturities.

The company took orders from investors in the Middle East, Europe and the U.S. The Initial price guidance was put in a range of 120 to 125 basis points over US Treasuries for the 3-year bond, 145 to 150 basis points for the 5-year bond and 165 to 170 basis points for the 7-year bond.

The offering attracted more than $10 billion in orders, being almost five-fold oversubscribed. HCA issued $1 billion of the 3-year bond, $500 million of the 5-year bond and $500 million of the 7-year bond.

On the back of strong demand, the bonds were priced to yield 95 basis points, 122.5 basis points and 147.5 basis points more than U.S. Treasuries, respectively. In particular, the final spread on the 3-year bond was much tighter than the initial price guidance.

The company’s latest offering marks the largest-ever bond sale from subsidiaries of Hyundai Motor Group. Some market watchers attributed strong demand to a recovery of investor risk appetite, with markets buoyed by scientific efforts to treat the new coronavirus.

The California-based company, which provides financing services to the U.S. operations of Hyundai Motor and Kia Motors, is one of the top ten auto financing firms in the U.S. It is a separate entity from Hyundai Capital Services, another subsidiary of the South Korean auto conglomerate, which focuses on the domestic market and emerging countries.

Currently HCA has ratings of Baa1 with a negative outlook by Moody’s and BBB+ with a stable outlook by Standard and Poor’s (S&P).

HSBC, JP Morgan, Mitsubishi UFJ Financial Group, Lloyds Bank, SMBC Nikko Securities and TD Securities acted as joint bookrunners.

(By reporter Pi Hye-rim)