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December 11, 2024

Hyundai Capital hopes to go beyond green car financing

PUBLISHED : June 28, 2021 - 16:50

UPDATED : June 28, 2021 - 20:36

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Hyundai Capital logo (Hyundai Capital)



Hyundai Capital Services, the auto financing arm of Hyundai Motor and Kia Motors, said on June 28 that it hopes to contribute to the broader eco-friendly automobile industry by proactively engaging not only in auto financing but also in other relevant businesses.

The company said Hyundai Capital is the leader in green bonds, having issued nine green bonds in four currencies -- US dollars, Korean won, Chinese yuan and Swiss franc -- since it first issued $500 million in green bonds in 2016, when it became the first private company issuing green bonds and marking the first issuance of senior green bonds in the automobile sector. 

History of green bond issuance by Hyundai Capital (Hyundai Captial)



The company said in addition to the size and diversity in green bonds, it has also ramped up its efforts to prevent a ESG bond issuer’s misuse of green bonds to ‘greenwash’ its image. Hyundai Capital said it has set up a Sustainability Financing Framework, which has been certified by DNV-GL, a global ESG-related institution, to track the ESG standards of bond issuers. ESG refers to three factors that measure sustainability and the social impact of corporate investment: Environment, Social, and Governance.

“Given global concerns over ‘greenwashing’ -- which refers to issuers raising funds at low interest rates and enjoying tax benefits in the name of eco-friendliness but failing to keep their investment promises -– bond issuers require a validated ESG framework based on international standards,” the company said in a statement.

Hyundai Capital is also making a foray into other new businesses, the company said. For instance, it participated in Vehicle to Grid, a test project backed by Hyundai Motor and Jeju Special Self-governing Province. V2G is a technology that turns an electric vehicle into a moving energy storage system by enabling energy to transfer from the battery of an electric car. Hyundai Capital said it provided 22 EVs to the project and two-way chargers.

In September, the company joined the on-demand charging service, which allows customers to charge their vehicles anywhere they want. Through this project, Hyundai Capital said it will explore the possibility of expanding mobile charging infrastructure and verify the possibility of solving battery waste problems due to the expansion of the electric vehicle market.

“In addition to the government and automobile manufacturers, financial companies’ role is essential for the stable growth of the eco-friendly automobile market. As a financing company for Hyundai Motor and Kia Motors, Hyundai Capital plans to contribute to the expansion of the eco-friendly automobile ecosystem in various fields in line with the global eco-friendly trend and government policies,” the company said.

(gypark@heraldcorp.com)

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