Hyundai Motor Securities has carried out a reorganisation that separates structured finance and corporate finance to strengthen competitiveness in its investment banking business. It aims to improve stability in its existing project financing (PF) and alternative investment-focused operations and expand corporate finance from the debt capital market (DCM) into areas such as initial public offerings (IPO) and mergers and acquisitions (M&A).

Hyundai Motor Securities said on Monday it has reshaped its existing IB organisation into two main divisions: the Structured Finance Division and the Corporate Finance Division.

The former IB Division has been renamed the Structured Finance Division. It plans to pursue a selective strategy focused on high-quality deals under risk management while concentrating on PF and alternative investments.

Kang Deok-beom (강덕범), who led the former IB Division, was appointed head of the Structured Finance Division.

It also created a Corporate Finance Division by separating the corporate finance function from the former IB Division. The division will be headed by Lee Yi-nam (이이남), an executive director who built experience and a network in the market for bonds issued by specialised credit finance companies.

Under the Corporate Finance Division, it set up Corporate Finance Office 1 and Corporate Finance Office 2. Corporate Finance Office 1 will place DCM Team 1 and DCM Team 2 to strengthen bond brokerage and underwriting and deal-sourcing capabilities.

Corporate Finance Office 2 will have Coverage Team 1 and Coverage Team 2 to expand the scope of corporate sales. It also created a Corporate Finance Support Team reporting directly to the division to support related work.

Hyundai Motor Securities plans to gradually expand its corporate finance business while maintaining the revenue base of the Structured Finance Division.

It plans first to foster its DCM business to strengthen sales of general corporate bonds, then later broaden its business scope into equity capital market (ECM) areas such as IPOs and M&A.

A Hyundai Motor Securities official said the reorganisation was intended to respond to a rapidly changing environment and maximise expertise in each business area. The official said it would, over the mid to long term, raise the firm's IB competitiveness by one level.