KSD, Short-Term Bond Fundraising of 1,243.7 Trillion Won Last Year

[Asia Economy Reporter Lee Seon-ae] The scale of funds raised through short-term bonds exceeded 1,240 trillion won last year.

According to the Korea Securities Depository on the 10th, the funds raised through short-term bonds last year amounted to 1,243.7 trillion won, a 20.6% increase compared to the previous year (1,031.3 trillion won). The average daily issuance amount on business days was 5 trillion won, an increase of 900 billion won in one year.

Short-term bonds are corporate bonds issued under certain conditions such as a maturity of one year or less and a minimum issuance amount of 100 million won. They are electronically issued, traded, and rights exercised through an electronic registration institution. Since the introduction of the system, issuance has generally increased, with a total of 8,150.3 trillion won issued up to last year, according to the Depository.

By type, general short-term bonds amounted to 1,020.8 trillion won, and securitized short-term bonds amounted to 222.9 trillion won. These represent increases of 22.9% and 11.1%, respectively, compared to the previous year.

By maturity, issuance within 3 months increased by 20.5% to 1,238.7 trillion won compared to the previous year (1,028.1 trillion won), accounting for 99.6% of the total issuance. The Depository analyzed that the reason for the high issuance within 3 months is due to the preference for issuing bonds with maturities within 3 months to avoid various costs such as payment of issuance fees when submitting securities registration statements.

Among these, ultra-short-term bonds (within 7 days) increased by 22.9% to 782.9 trillion won compared to the previous year (636.9 trillion won). The issuance amount by securities companies among ultra-short-term bonds was 624.4 trillion won, a 22% increase from the previous year (511.6 trillion won).

By credit rating, issuance volume decreased as the credit rating lowered in the order of A1, A2, A3, A4, and below B. Among them, issuance of A1 grade was 1,172.3 trillion won, a 23.8% increase from the previous year (947.2 trillion won), accounting for 94.3% of the total issuance. This was followed by △A2 (55.7 trillion won) △A3 (14.3 trillion won) △Below B (1.4 trillion won).

By industry, securities companies recorded 715 trillion won, a 23.7% increase from the previous year (577.8 trillion won). Securitization companies increased by 11.1% from 200.7 trillion won to 222.9 trillion won, and other financial businesses such as card and capital companies, which showed a 22% growth rate, increased from 165.9 trillion won to 202.4 trillion won. General and public enterprises issued 103.4 trillion won, a 19% increase compared to the previous year (86.9 trillion won).

Meanwhile, the short-term bond system was introduced in 2013 to replace commercial paper, and with the enforcement of the Electronic Securities Act, the existing name ‘electronic short-term bonds’ was changed to ‘short-term bonds.’

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