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Hyundai's debt offerings draw strong response

Autos 17:42 April 28, 2020

SEOUL, April 28 (Yonhap) -- Hyundai Motor Co.'s planned 300 billion won (US$240 million) worth of corporate bond sales have received a strong market response despite the coronavirus impact on the automobile sector, financial sources said Tuesday.

Hyundai will sell the debt with a maturity period of three to seven years on May 8, to secure operating capital, as COVID-19 has driven down vehicle production and sales in major markets.

According to the sources, Hyundai Motor's debt offerings have received 1.41 trillion won worth of orders, more than three times higher than the planned issuance.

Hyundai is expected to double the value of corporate bond issuance to 600 billion won, he said.

This photo, taken on April 23, 2020, shows a traffic light turning red against the background of Hyundai Motor's headquarters building in Yangjae, southern Seoul. (Yonhap)

The debt issuance is handled by Mirae Asset Daewoo, KB Securities Co. and NH Investment & Securities Co.

The maker of the Sonata sedan and the Palisade sport utility vehicle has suspended most of its overseas plants, as governments have demanded manufacturers temporarily suspend production until the COVID-19 outbreak slows down.

Hyundai sold 300 billion won worth of corporate bonds with a five-year maturity in October 2016 to raise necessary funds.

Hyundai's net profit for the January-March period fell 42 percent to 552.68 billion won from 953.79 billion won a year earlier.

It sold a total of 904,746 vehicles in the first three months, down 11 percent from 1,021,391 units in the same period of last year.

kyongae.choi@yna.co.kr
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