- Hyundai Motor Co., Ltd. engages in the manufacture and distribution of motor vehicles and parts. It operates through the following business areas: Vehicle, Financial and Others. The Vehicle division offers motor vehicles. The Financial division provides financing, leasing and credit cards. The Other division includes manufacture of railways. The company was founded on December 29, 1967, and is headquartered in Seoul, South Korea.
- Hyundai Capital America benefits from a support agreement with Hyundai Motor (HMC). HCA investor relations confirmed its support (keepwell) agreement contains a fixed charge coverage provision that it views as particularly strong compared to other peers. HCA’s support agreement stipulates that HMC will make cash contributions to HCA if the fixed charge coverage is below 1.1x, allowing the company to mitigate the impact on capital from losses. Key provisions of the support agreement listed in the business update include (1) HMC agrees it, its controlled subsidiaries, and entities subject to joint control, will own 100% of HCA, (2) HMC will cause HCA and its subsidiaries to maintain positive consolidated tangible net worth, (3) HMC will take all necessary actions to ensure HCA maintains a minimum Fixed Charge Coverage of 1.1x, and (4) Third-party enforceability rights.
Insights 
INVESTMENT STRATEGY
THE BASICS
Downloads
DOWNLOAD
DOWNLOAD
DOWNLOAD
View all Reports
Inflation Report
Inflation Updates (December 5, 2023)
DOWNLOAD
Economic Updates
November 2023 Updates: Upward tilt of inflation still a possibility
DOWNLOAD
Economic Updates
3Q 2023 PH GDP Report: Upward bias for full-year GDP forecast
DOWNLOAD
Follow us on our platforms.
Our Top Picks
We highlight some of the bonds we currently prefer, based on the value they offer and the strength of their credit.
Read this content. Log in or sign up.
If you are an investor with us, log in first to your Metrobank Wealth Manager account.
If you are not yet a client, we can help you by clicking the SIGN UP button.
OUR TOP PICKS
Top Picks (Dollar Corporate Bonds)
as of December 11, 2023
Hyundai Motor
- Issuer: Hyundai Motor
- Credit Rating: -/BBB/-
- Bond: HYNMTR 5.65 26
- Indicative Yield-to-Maturity (YTM): 5.84%
State Bank of India
- Issuer: State Bank of India
- Credit Rating: -/BBB/-
- Bond: SBIIN 4.875 28
- Indicative Yield-to-Maturity (YTM): 5.23%
- State Bank of India is the largest commercial bank in India. Its predecessor banks date back to the 19th century. In the early 20th century, they merged to form the Imperial Bank of India which became the State Bank of India after India gained independence in 1947.
- The Government of India remains the largest shareholder with a 56.9% stake. Per the SBI Act, the government's shareholding cannot fall below 55%.
- SBI's merged with its 5 associate banks and Bharatiya Mahila Bank in 2018. The merger catapulted SBI into one of the world's 50 largest banks.
- The bank has 85% of its loans in the domestic market, and has steadily increased its international business too over the past few years with offices across all international business centres.
- It has diversified its operations with well regarded subsidiaries in the areas of fund management, credit cards, insurance, and capital markets.
Export-Import Bank of Korea
- Issuer: Export-Import Bank of Korea
- Credit Rating: ( Aa2 / AA / AA- )
- Bond: EIBKOR 5.125 33
- Indicative Yield-to-Maturity (YTM): 4.71%
- KEXIM was set up in 1976 to support Korean companies in their overseas business through export credit guarantee programs, as well as providing finance for imports and for overseas investment. It provides funding for both short term trade and long term investment, manages the Economic Development Cooperation Fund, a Korean official development assistance program, and was a conduit through which the government doled out COVID-19 assistance to affected companies.
- Till 2030, KEXIM aims to preferentially focus on seven sectors (hydrogen energy, wind and solar power, rechargeable battery and energy storage systems (ESS), future mobility, 5G and next-generation semiconductors, pharmaceutical and healthcare, and digital technology and cultural content) which are considered new growth drivers of the Korean economy. It has historically focused on the shipbuilding, and engineering & construction industries.
- KEXIM is 100% owned by the Korean government: 69% directly and the remainder through stakes held by the Bank of Korea (9%) and Korea Development Bank (22%). In contrast to peer policy banks IBK and KDB, KEXIM has remained more consistently a policy bank but its role has been adjusted to ensure it complements rather than competes with the Korean commercial banks.
Kasikornbank
- Issuer: Kasikornbank
- Credit Rating: Baa1 / BBB+ / BBB+
- Bond: KBANK 5.458 28
- Indicative Yield-to-Maturity (YTM): 5.40%
- Kbank is currently the second largest bank in Thailand. It briefly was the largest from 2018 until mid-2020, upon which Bangkok Bank completed its acquisition of Indonesia's Bank Permata and took its place.
- KBank's history can be traced back to 1945 when it was first established as Thai Farmers Bank. It was listed on the Stock Exchange of Thailand in 1976 and changed its name to Kasikornbank in 2003.
- As of end-Sep 2022, the bank's loan mix by segment consists of 35% corporate, 32% SME, 28% retail and 5% others.
- KBank is known for its strong SME franchise. Its focus industries in SME are construction, construction materials, food & beverage, and hardware.
- It partially owns a life insurance company, Muang Thai Life.
Export-Import Bank of India
- Issuer: Export-Import Bank of India
- Credit Rating: ( Baa3 / BBB- / BBB- )
- Bond: EXIMBK 5.5 33
- Indicative Yield-to-Maturity (YTM): 5.45%
- EXIMBK presently serves as a growth engine for the internationalization efforts of Indian businesses, facilitating the import of technology and export product development, export production, export marketing, pre- and post-shipment, as well as overseas investment.
- As at 1H23, EXIMBK's loan portfolio is principally made up of export finance (80%) and term loans to exporters (13%), with remaining split among the financing of overseas investment, import finance, and export facilitation. 66% come under the policy business while the remaining are to the commercial business.
- By geography, the bank has a primary exposure of 45% to Africa, 45% to South Asia, 6% to rest of Asia, and 4% to the Americas and Europe.
