Treasury Practice

Hyundai Capital America Adam Smith Webinar

Published: Jan 0001

Cars run on credit, not gas!

Hyundai Capital logo

Adam Smith Awards Winner – Top Treasury Team 2015

HCA embarked upon a multi-year strategic plan which mapped out a new organisational structure spanning eight domains of expertise ranging from treasury operations and cash management to investor relations, exposure and risk management – a truly remarkable journey of transformation.

Hyundai Capital America (HCA) is a top ten auto lender. While initially HCA relied on low-cost asset backed securities (ABS) and attractive bank lending facilities to fund the lion’s share of its funding needs, asset growth propelled HCA’s balance sheet from $5bn in 2009 to close to $20bn by the end of 2012. Eric Senay and Frank Boroch share the key elements of HCA Treasury’s work including diversification of funding channels to support business expansion, deepening of liquidity sources to soundly manage the inherent volatility in the business, de-risking of the balance sheet through sophisticated liability management, reduction of interest expenses through improved financial community management and optimisation of funding instruments, and enhancement of flexibility for the business to finance incremental asset classes.

This webinar is held on Wednesday 13th April 2016.

Questions asked throughout the webinar

  • Was your reporting dashboard for your executive management developed entirely in-house within HCA or is this something that you purchased externally? (13:04)

  • Can you give us an indication of the number of FTE employees that you have within your treasury department as a result of this transformation programme? (14:05)

  • Whilst these changes don’t come into effect until December 2018 for US GAAP reporting, Treasury Today has recently become aware of some IFRS 16 changes to the way in which operating leases must move on balance sheet. Do any of these changes impact HCA in any way? (34:25)

  • On an earlier slide you mentioned that the US vehicle sales represent the second largest auto market for your company and very recently in the presentation you identified the number one market as China. My question relates to currency exposures when you’re raising debt in currencies other than US dollars. How do you go about that? What are the key issues for you? (35:55)

  • What are you looking at over the next 12 to 18 months? If there were maybe two or three major challenges, issues or concerns that you’re focused on, what would you say they are? (37:18)

  • Of all the components of your treasury transformation programme, what would you say have delivered the biggest benefits? (39:34)

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