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Hyundai

Global note issue seeks US$340m for Hyundai

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KOREAN conglomerate Hyundai Electronics America is seeking US$340 million through a floating-rate note (FRN) issue being offered to institutions in Europe, the United States and Asia.

Bankers said the issue, still being finalised, would probably be launched by today.

Korea First Finance was mandated to arrange the issue, but was still talking to other arrangers yesterday.

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The arranger group is expected to muster strong European and US names to help with the placement, including ABN-AMRO Bank, Credit Lyonnais Seoul, Bankers Trust and Standard Chartered Markets.

The FRNs would carry a guarantee from Hyundai Electronic Industries, which would itself be armed with a counter guarantee from Hyundai Heavy Industries, bankers said.

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Despite the deal's packaging as a debt issue, it would probably be more like a syndicated loan, and might take longer than a straight debt issue to complete, bankers said.

'This is really a loan,' said one banker who expected to join the deal.

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