South Korea's Hyundai Capital Services Inc. and the Brazilian unit of Spanish lender Banco Santander SA will invest in an auto financing joint venture with a total paid-in capital of 33.30 billion won, Money Today reported, citing industry sources.

The joint venture, which was established under an agreement signed by Hyundai Capital Services and Banco Santander (Brasil) SA in 2016, received regulatory approval from the Brazilian government and the Central Bank of Brazil in 2017.

As part of the deal, Hyundai Capital will convert its office in Brazil into a corporation and will apply for a business license later this year, with plans to commence operations in early 2019.

Hyundai Capital, a majority-owned subsidiary of Hyundai Motor Co., held an 11% market share in Brazil in 2017 and has auto financing operations in the U.S., the U.K., Germany, China and Canada.

As of March 19, US$1 was equivalent to 1,071.93 South Korean won.