Tuesday 19 July 2016 by FIIG Research Company updates

Company updates — BlueScope Steel, new Hyundai Capital Services DirectBond and thermal coal outlook improving

Hyundai Capital Services added to our DirectBond list, BlueScope increased its FY16 underlying earnings guidance, and thermal coal prices are showing signs of recovery

New DirectBond – Hyundai Capital Services Inc. 3.50% AUD 3 June 2021 senior unsecured bond

Hyundai Capital Services Inc. (HCS) is a joint venture between Hyundai Motor Company (HMC) and General Electric Capital Corporation (GECC). It is a leading financial services company in Korea, and the Issuer’s principal business areas are automotive finance, automotive leasing and personal loans. HCS derives significant benefits from its relationships with its principal shareholders. As the primary financing arm of HMC, the largest automotive manufacturer in Korea, and Kia Motors Corporation, HCS held the largest share of the Korean automotive financing and automotive lease markets based on sales volume for the year ended 31 December 2015.

On 3 June 2016, HCS launched a new senior unsecured bond with a final maturity in June 2021. It is a fixed rate bond with a coupon of 3.50% per annum. The bond is only available to wholesale investors, with minimum investments of A$10,000 and denominations of A$5,000 thereafter.

For more information please see the factsheet.External link - opens in a new window

BlueScope Steel

BlueScope has increased its FY16 underlying earnings before interest and tax (EBIT) guidance to $580m, representing around a $70m improvement in the second half of FY16.

More information is available here.External link - opens in a new window

The outlook for thermal coal is improving

Following five consecutive years of price declines, thermal coal prices are showing signs of a recovery. Thermal coal prices have jumped to year highs due to a reported surge in demand from some large Chinese buyers looking to shore up their inventories.

More information is available here.External link - opens in a new window