Hyundai Card Reopens Korea's Kimchi Bond Market, Expands Funding Portfolio with Dual-Currency USD-CNY Issuance

Hyundai Card expands its funding toolkit by launching a dual-currency Kimchi bond in USD and CNY. The June 17 issue marks the first Korean non-bank lender to issue a USD-CNY Kimchi bond, issued as a green instrument under Korea’s taxonomy. The notes total KRW 128.7 billion, split as USD 20 million and CNY 440 million; the dollar tranche carries a one-year note priced at 77 basis points over SOFR, while the yuan tranche offers a 2.09% coupon over two years. Proceeds will finance Hyundai Motor Group's eco-friendly mobility initiatives and broaden the investor base while reducing currency-specific funding risks. Hyundai Card had earlier issued an USD 80 million Kimchi bond in February, continuing an expansion of its Kimchi bond program this year. The new dual-currency structure extends the format to Chinese investors, aligning with growing interest in Korea’s domestic bond market. Other Korean issuers like LG Electronics and Lotte Property & Development have also joined the Kimchi bond market, signaling a wider diversification trend. The issuance demonstrates how Korean fintechs and lenders are diversifying funding channels amid volatility and rising interest rates.