Kia's first dedicated electric vehicle, EV6 (Courtesy of Kia)
Kia Corp. has issued its first foreign currency ESG bonds worth $700 million to strengthen its investment in electric vehicles and other eco-friendly initiatives.
According to the investment banking industry on Apr. 13, Kia has issued non-guaranteed, dollar-denominated green bonds for sale to global institutions based outside the US.
The bond issuance marks Kia's second foreign debt after the first set in 2017.
Of the total, $300 million worth of bonds were issued with a maturity of three years, while the other $400 million have a maturity of five and a half years.
The three-year bonds have a yield of 75 basis points above the yield on US treasuries with the same maturity, whereas the five-and-a-half-year bonds have a yield of 90 basis points above the US treasuries yield with the same maturity.