South Korean auto financing firm Hyundai Capital said Thursday that it has issued three-year Swiss franc-denominated green bonds worth 300 million francs ($316 million).

The bonds are being issued by the subsidiary of Hyundai Motor Group for the automaker’s lease financing programs on its green car lineup.

It is the firm’s third overseas green bond issuance since 2016.

A green bond is specifically earmarked to be used for climate and environmental projects.

The latest deal enables investors to enjoy higher interest rates by Switzerland’s mid-swap and another 135 basis points, the officials said.

Prior to the deal, the financing firm issued bonds worth 1.98 billion francs eight times, after entering the Swiss market in 2010.

“We have reinforced our position in the market by continuously providing liquidity to Swiss investors. As a result, we could complete the massive amount of the latest bond issuance amid the global economic downturn during the COVID-19 pandemic,” an official said.

By Jie Ye-eun (yeeun@heraldcorp.com)