이 기사는 2021년 04월 30일 08:18 thebell 에 표출된 기사입니다.

Hyundai Motor’s Indonesian unit PT Hyundai Motor Manufacturing Indonesia (HMMI) has raised $300 million in a five-year bond sale on Tuesday, drawing $2.7 billion in bids during the book building process from around 170 global institutional investors.

The tranche consisted of five-year fixed rate bond. BNP Paribas, Citigroup Global Markets Securities and HSBC managed the sale.

The deal attracted strong response from investors, with orders worth more than $1 billion rushing in after the company announced the deal on Tuesday morning.

HMMI successfully sold its bonds as the new debt, rated BBB+, is guaranteed by parent Hyundai Motor. Hyundai Motor is rated Baa1 and BBB+ by Moody's and S&P, respectively.

The bond was issued at one percentage point above the five-year US Treasury yield, 35 basis points tighter than the initial price guidance, with a coupon of 1.75% to offer a yield of 1.834%.

Hyundai Motor has proved its presence in the bond market through the latest deal. There was possibility of a credit rating downgrade for Hyundai Motor Group last year due to the slowdown in the automotive industry and the pandemic risk.

However, investor appetite for the automotive conglomerate is getting stronger thanks to increasing demand for automobile, improving financial performance and its expansion to eco-friendly vehicles. Hyundai Capital also sold global bonds in February.

Hyundai Motor said in a preliminary earnings report that its operating profit jumped by 91% to approximately 1.65 trillion won ($1.5 billion) in the first quarter on a consolidated basis compared to a year earlier. (Reporting by Hye-rim Pi)