South Korea’s Kia Motors Corp. has successfully raised $900 million in a dual-tranche global offering, $100 million bigger than it planned due to overwhelming response in spite of its deteriorating performance and geopolitical risks from escalated military tensions.

The country’s second largest automaker issued $600 million in 5.5-year notes and $300 million in 10-year papers, according to the investment bank industry on Friday. The coupon rate of the 5.5-year note was set at 3.163 percent and 10-year one at 3.561 percent.

In book building, Kia Motors drew $2.2 billion bids for 5.5-year papers and $1.25 billion bids for 10-year issues. The carmaker stretched the 5.5-year offering by another $100 million to meet the demand.

The overwhelming order book came as Kia has been struggling due to poor business in China and downgrade in the outlook for its credit rating on top of increased geopolitical risks on the Korean peninsula due to North Korea’s missile and nuclear provocations.

Kia’s case underscores strong foreign appetite in Korean debt following the confidence of vote from global credit rating agencies. Moody’s has recently reaffirmed South Korea’s sovereign credit rating at its third-highest Aa2 with a stable outlook. Fitch also kept stable outlook on Korea’s sovereign credit rating at its fourth highest AA-.

Kia will use the proceeds to construct a plant in India and finance its debt. The automaker in July announced it would invest $1.1 billion to build a factory by 2019 with annual output capacity of 300,000 vehicles in Anantapur, India.

By Chun Gyung-woon and Lee Ha-yeon

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