Hyundai Capital Bolsters Global Funding Network Amid Market Uncertainties

Hyundai Capital has built a strong foundation for its global operations by diversifying its funding across eight currencies, including the U.S. dollar, euro, Japanese yen, Swiss franc, Australian dollar, Chinese yuan, Hong Kong dollar, and Singapore dollar.

The company has achieved this through flexible currency weightings that are adjusted based on market conditions, with notable examples being the reduction of the Swiss franc weighting from 19% in 2021 to 3% this year and the expansion of the euro weighting to 17% since 2024.

This strategy was put to the test during the 2022 Legoland crisis when Hyundai Capital utilized alternative funding sources, including overseas bonds, asset-backed securities (ABS), and bank loans, to prevent a funding crunch from escalating into an actual crisis. The company has since continued to strengthen its response capabilities, issuing approximately ₩1 trillion in overseas private ABS at the end of 2024 and flexibly utilizing foreign currency funding in line with the domestic interest rate uptrend.

Hyundai Capital's global funding history spans over two decades, beginning with overseas ABS in 2002 and including notable achievements such as issuing the first Samurai Bond by a South Korean private company and the first dollar-denominated bond by a specialized credit finance company in 2005. The company has also issued the first foreign currency green bond by a South Korean private company in 2016.