February Corporate Direct Financing Performance...Stocks and Corporate Bonds Surge 53%

[Asia Economy Reporter Park Jihwan] The scale of direct corporate financing through stocks and corporate bonds surged by 52.9% last month compared to the previous month.

According to the Financial Supervisory Service on the 31st, the issuance performance of corporate stocks and corporate bonds last month was 17.1368 trillion KRW (stocks 238.4 billion KRW, corporate bonds 16.8984 trillion KRW), an increase of 5.9312 trillion KRW compared to the previous month.

Stocks saw a significant increase in both initial public offerings (IPO) and paid-in capital increases, and corporate bonds issuance also increased overall as asset-backed securities (ABS), general corporate bonds, and financial bonds all rose.

The stock issuance scale last month was 7 cases, 238.4 billion KRW, a 399.8% (190.7 billion KRW) increase compared to the previous month (4 cases, 47.7 billion KRW). IPOs were 6 cases, 138.1 billion KRW, up 557.6% (117.1 billion KRW) from the previous month (2 cases, 21.0 billion KRW). Paid-in capital increases were 1 case, 100.3 billion KRW, up 275.7% (73.6 billion KRW) from the previous month (2 cases, 26.7 billion KRW).

The corporate bond issuance scale also increased by 51.4% (5.7405 trillion KRW) to 16.8984 trillion KRW from the previous month (11.1579 trillion KRW). SK Hynix (1.06 trillion KRW), LG Chem (900 billion KRW), Kookmin Bank (800 billion KRW), Woori Bank (750 billion KRW), Samsung Securities (540 billion KRW), Mirae Asset Daewoo (500 billion KRW), and Hyundai Oilbank (500 billion KRW) were among those who issued corporate bonds.

General corporate bonds surged by 107.0% (3.436 trillion KRW) to 6.647 trillion KRW with 55 cases, compared to the previous month (35 cases, 3.211 trillion KRW). This was mainly due to proactive funding for debt repayment purposes focusing on medium- to long-term bonds recently issued for purposes such as funding use and maturity.

Financial bonds amounted to 9.393 trillion KRW with 136 cases, an increase of 25.1% (1.884 trillion KRW) from the previous month (7.509 trillion KRW). ABS issuance was 48 cases, 858.4 billion KRW, up 96.0% (420.5 billion KRW) from the previous month (29 cases, 437.9 billion KRW). There was no issuance of primary collateralized bond obligations (P-CBO).

At the end of last month, the outstanding balance of corporate bonds was 531.5017 trillion KRW, up 1.2% (6.1886 trillion KRW) from the previous month (525.3131 trillion KRW). General corporate bonds saw a net increase in issuance as issuance volume significantly exceeded redemption volume.

Last month, the issuance performance of commercial paper (CP) and short-term bonds totaled 126.8209 trillion KRW, an increase of 4.3% (5.2323 trillion KRW) compared to the previous month (121.5886 trillion KRW).

This content was produced with the assistance of AI translation services.