KSD Reports 322.6 Trillion KRW in Short-Term Bond Fundraising in Q3, Up 35.2% YoY

[Asia Economy Reporter Lee Seon-ae] The total amount of funds raised through short-term bonds in the third quarter of this year was recorded at 322.6 trillion KRW. This represents an increase of 84 trillion KRW (35.2%) compared to the same period last year (238.6 trillion KRW) and an increase of 2.4 trillion KRW (0.7%) compared to the previous quarter (320.2 trillion KRW). Short-term bonds are corporate bonds issued with certain conditions such as a maturity of one year or less and a minimum issuance amount of 1 billion KRW. Issuance, distribution, and rights exercises are processed electronically through an electronic registration agency.

According to the Korea Securities Depository on the 12th, the issuance volume of general short-term bonds in the third quarter was 268.9 trillion KRW, an increase of 82.1 trillion KRW (44.0%) compared to the same period last year (186.8 trillion KRW). The issuance volume of securitized short-term bonds was 53.7 trillion KRW, up 1.9 trillion KRW (3.7%) from the same period last year (51.8 trillion KRW).

By maturity, bonds issued within 3 months (322.4 trillion KRW) accounted for 99.9% of the total. By credit rating, issuance volumes were highest in the order of A1 (305.7 trillion KRW), A2 (13.2 trillion KRW), A3 (3.3 trillion KRW), and below B (0.4 trillion KRW). By industry, securities companies (194.6 trillion KRW), securitization companies (53.7 trillion KRW), card, capital, and other financial businesses (47.8 trillion KRW), and general/public enterprises (26.5 trillion KRW) issued bonds in that order.

Looking at issuance status by type, general short-term bonds were issued at 268.9 trillion KRW. This is an increase of 44.0% compared to the same period last year (186.8 trillion KRW) and 1.1% compared to the previous quarter (266.0 trillion KRW).

Securitized short-term bonds were issued at 53.7 trillion KRW, up 3.7% from the same period last year (51.8 trillion KRW) but down 0.9% from the previous quarter (54.2 trillion KRW).

The issuance volume of foreign currency-denominated short-term bonds was 545 million USD, an increase of 37.1% compared to the same period last year (367.9 million USD). However, it decreased by 38.6% compared to the previous quarter (821.4 million USD).

By maturity, issuance volume within 3 months accounted for 322.4 trillion KRW, or 99.9% of the total. The trend of issuing mostly bonds with maturities within 3 months continued. This is mainly attributed to the current exemption from submitting securities registration statements.

Issuance volume of ultra-short-term bonds within 7 days was 203.4 trillion KRW (63.0% of the total), a 43.0% increase compared to the same period last year (142.2 trillion KRW). Compared to the previous quarter (211.0 trillion KRW), it decreased by 3.6%. Among these, 1-day bonds accounted for 129.1 trillion KRW, or 40.0% of the total issuance volume.

Issuance volume of bonds maturing within 8 to 92 days was 119 trillion KRW (36.9% of the total), up 24.2% from the same period last year (95.8 trillion KRW) and 12.4% from the previous quarter (105.9 trillion KRW).

Issuance volume of bonds maturing within 93 to 365 days was 0.2 trillion KRW (0.1% of the total), showing a decrease of 66.7% compared to the same period last year (0.6 trillion KRW) and 93.9% compared to the previous quarter (3.3 trillion KRW).

By credit rating, issuance volume of A1 grade bonds was 305.7 trillion KRW, an increase of 38.1% compared to the same period last year (221.4 trillion KRW) and 1.6% compared to the previous quarter (300.9 trillion KRW).

A1 grade bonds accounted for the majority of total issuance volume (94.8%). The Korea Securities Depository judged that there was no significant change in the preference for safe asset investments.

Issuance volume of bonds rated A2 and below was 16.9 trillion KRW (5.2%), a decrease of 1.7% compared to the same period last year (17.2 trillion KRW) and 12.4% compared to the previous quarter (19.3 trillion KRW).

By issuing company industry, securities companies issued 194.6 trillion KRW, accounting for the largest share of total issuance volume (60.4%). This is an increase of 57.6% compared to the same period last year (123.5 trillion KRW) and 1.0% compared to the previous quarter (192.7 trillion KRW).

Securitization companies issued 53.7 trillion KRW, accounting for 16.6% of the total. This is a 3.7% increase compared to the same period last year (51.8 trillion KRW) and a 0.9% decrease compared to the previous quarter (54.2 trillion KRW).

Card, capital, and other financial businesses issued 47.8 trillion KRW, accounting for 14.8% of the total. This is a 16.6% increase compared to the same period last year (41 trillion KRW) and an 11.3% decrease compared to the previous quarter (53.9 trillion KRW).

General companies and public enterprises issued 26.5 trillion KRW, accounting for 8.2% of the total. This is an increase of 18.8% compared to the same period last year (22.3 trillion KRW) and 36.6% compared to the previous quarter (19.4 trillion KRW).

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