Hyundai Capital Services HCS, South Korea’s dominant supplier of auto finance, received a remarkably powerful response to its latest unsecured debt issuance which is part of the company's $2 billion global MTN programme.
Some $2.25 billion worth of orders were placed for the $400 million fixed-rate five-year issue. That demand helped push down the yield to mid-swaps plus 58 basis points, well inside the initial guidance range of mid-swaps plus 60-65bp.
“This is one of the cheapest BaaBBB credits in Korea. It’s a great story which investors are only now beginning to understand,” enthuses one source.
The coupon and...