Hyundai Capital Services Inc. has sold $700 million in green bonds to back Hyundai Motor Group’s push in electric and hydrogen vehicles.

The dual-tranche bonds broke down to $400 million offering in 3.25-year maturity and $300 million in 5- year maturity. They were priced 87 basis points above the relative three-year U.S. treasuries and 97 basis points over five-year notes.

The five-year papers will back financing for purchase of all-electric and hydrogen models of Hyundai Motor and Kia.

Despite the uncertainties from tightening cycle, the offering drew 140 institutions.

The heated response is attributed to reliability of Hyundai Motor carmakers, the company said. Kia raised its stake in Hyundai Capital to 40.1 percent from 20.1 percent in December, pushing up total ownership of Hyundai Motor and Kia in the auto financing company to 99.8 percent.

By Susan Lee

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