Hyundai 2015 Annual Report Download - page 49

HYUNDAI MOTOR COMPANY Annual Report 2015
96 97
(6) Financial support provided to consolidated structured entities
As of December 31, 2015, Hyundai Card Co., Ltd. and Hyundai Capital Services, Inc., subsidiaries of the Company, have agreements
which provide counterparties with rights to claim themselves in the event of default on the derivatives relating to asset-backed
securities issued by consolidated structured entities, Autopia Forty-Fifth, Forty-Sixth, Forty-Ninth, Fifty-Second, Fifty-Seventh
and Fifty-Ninth Asset Securitization Specialty Company, Privia the Fourth Securitization Specialty Co., Ltd., Super Series First Se-
curitization Specialty Co., Ltd..
(7) The nature and the risks associated with interests in unconsolidated structured entities
1) Nature of interests in an unconsolidated structured entity, which belongs to the Group as of December 31, 2015 is
as follows:
In millions of Korean Won
Description Purpose
Nature of
business
Method of
funding
Total
assets
Asset securitization SPC Fund raising
through asset securitization
Fund
collection
Corporate
bond and others ￦ 325,752
Investment fund
Investment in
beneficiary certificate and others,
Development trust,
Unspecified monetary trust,
Principal unsecured trust,
Operation of trust investment
Fund management
and operation
and others,
Trust management
and operation,
Payment of trust fee,
Distribution of
trust benefit
Sales of
beneficiary
certificates,
Sales of trust
investment
product
8,823,385
Structured Finance Fund raising
through project financing
Project financing
for construction
project and
ship investment
Project
financing and
others
2,800,091
Nature of interests in an unconsolidated structured entity, which belongs to the Group as of December 31, 2014 is as follows:
In millions of Korean Won
Description Purpose
Nature of
business
Method of
funding
Total
assets
Asset securitization SPC Fund raising
through asset securitization
Fund
collection
Corporate
bond and others ￦ 305,457
Investment fund Investment in beneficiary certificate Fund management
and operation
Sales of beneficiary
certificates 13,207,887
Investment trust
Development trust,
Unspecified monetary trust,
Principal unsecured trust,
Operation of trust investment
Trust management
and operation,
Payment of trust fee,
Distribution of
trust benefit
Sales of trust
investment
product
34,442
2) Risks associated with interests in an unconsolidated structured entity, which belongs to Group as of December 31,
2015 are as follows:
In millions of Korean Won
Book value in the
structured entity (*)
Financial support provided to the structured entity Maximum amount
of exposure to loss
of the structured entityDescription Method Purpose
Asset securitization SPC ￦ 54,880 Mezzanine
debt and others
Credit facility,
Loan agreement
(Credit line)
￦ 59,897
Investment fund 178,582
Beneficiary
certificates,
Investment trust
Invest
agreement 178,582
Structured Finance 225,897 Loan
obligation
Loan agreement
(Credit line) 336,500
(*) Interest in structured entities is recognized as AFS financial assets and others according to K-IFRS 1039.
Risks associated with interests in an unconsolidated structured entity, which belongs to Group as of December 31, 2014 are as
follows:
In millions of Korean Won
Book value in the
structured entity (*)
Financial support provided to the structured entity Maximum amount
of exposure to loss
of the structured entitDescription Method Purpose
Asset securitization SPC ￦ 31,209 Mezzanine debt Credit facility ￦ 31,209
Investment fund 210,023 Beneficiary certificates Invest agreement 210,023
Investment trust 26,491 Investment trust ˝26,491
(*) Interest in structured entities is recognized as AFS financial assets and others according to K-IFRS 1039.
(8) Significant restrictions of the subsidiaries
1) As of December 31, 2015, Hyundai Card Co., Ltd. and Hyundai Capital Services, Inc., subsidiaries of the Compa-
ny have significant restrictions that require them to obtain consent from directors appointed by non-controlling
shareholders in the event of merger, investment in stocks, transfer of the whole or a significant part of assets,
borrowing, guarantee or disposal of assets beyond a certain amount, acquisition of treasury stock, payment of
dividend and so on.
2) As of December 31, 2015, Hyundai Rotem Company, subsidiary of the Company, is required to obtain consent from
directors appointed by non-controlling shareholders in the event of significant change in the capital structure of
the entity, excluding transactions according to the business plan or the regulation of the Board of Directors, such
as issue, disposal, repurchase or retirement of stocks or options, increase or decrease of capital, and so on.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014