Hyundai Capital is expected to make a decision early this week on who will arrange its upcoming auto loan-backed private placement. The Korean consumer finance company invited bids in January from a quartet of houses - Calyon Securities, HSBC, ING and Standard Chartered.
The winning bank will either transfer the deal to a conduit or act as the sole investor and keep the bonds on balance sheet, according to bankers familiar with the Korean scene. That strategy worked well for Merrill Lynch last year when it arranged and purchased offerings by Korea First Bank and Samsung Card. Even rivals felt it a smart play because of the attractive spread pick-up at the time, particularly with Samsung Card struggling to find attractive funding domestically.