Hyundai Capital succeeded in issuing a ‘Kangaroo bond’, which makes it the first private sector company to issue this type of product. Hyundai raised 250 million Australian dollars using the Kangaroo bond, half with a fixed interest rate(4.5%) and the other half with a variable interest rate(3M BBSW+150). The Kangaroo bond market is the 5th largest bond market in the world, and there has not been any Korean entity participating in the market between 2008 and 2011.
Hyundai Capital not only succeeded in diversifying its source of capital but also proved its capacity to raise capital from overseas markets. The bond was also the first Kangaroo bond issued by a Korean financial entity, and also the first Korean bond that received a BBB rating.