Korea Investment & Securities Co. said on the 6th that it completed the issuance work as lead manager for the $50 million (about 72.8 billion won) public "kimchi bond" issued by Hyundai Capital.
A "kimchi bond" refers to a bond issued in foreign currency in the domestic market by a resident or corporations with demand for foreign-currency funds. This Hyundai Capital kimchi bond was structured as a single 2-year maturity and was issued in the form of a floating-rate note (FRN) that adds the U.S. risk-free rate (SOFR), a risk-free benchmark rate collateralized by U.S. Government Bonds.
This issuance is meaningful in that it drew solid demand for a large offering despite the difficult environment of heightened volatility in the global financial market recently. Korea Investment & Securities Co. emphasized that, based on Hyundai Capital's credit quality and the company's differentiated sales capabilities, it secured stable foreign-currency liquidity in a timely manner and proved its funding competitiveness.
An official at Korea Investment & Securities Co. said, "Through kimchi bonds, issuers can diversify their funding channels and secure stable foreign-currency funds," and added, "We will continue to lead the market by providing a variety of funding solutions tailored to corporations' needs."