Last Year, Electronic Registration Issuance of Bonds and CDs Reached 487.6 Trillion Won, Up 7.3% Year-on-Year

[Asia Economy Reporter Lee Seon-ae] The scale of registered bond and CD issuances increased last year.

According to the Korea Securities Depository on the 13th, the scale of registered bond and CD issuances last year was KRW 487.6 trillion, an increase of about 7.3% compared to the previous year (KRW 454.4 trillion). Among these, bond issuance amounted to KRW 454.7 trillion, up 5.7% from KRW 429.9 trillion the previous year. The scale of CD issuance grew by 34.2%, from KRW 24.5 trillion to KRW 32.9 trillion.

Among the KRW 487.6927 trillion of registered bond and CD issuances, financial company bonds (KRW 143.411 trillion) accounted for the largest share at 29.4%. This was followed by △special finance bonds △general corporate bonds △general special bonds △securitized SPC bonds △CDs △national housing bonds △local bonds △local public corporation bonds △quasi-collective investment institution bonds in order.

Among these, national housing bonds were registered at KRW 18.8057 trillion, a 0.5% increase compared to the previous year (KRW 18.7045 trillion). Local bonds were registered at KRW 6.9867 trillion, a 10.3% decrease from one year earlier (KRW 7.7971 trillion). Among them, regional development bonds accounted for 54.2%, recruitment local bonds 31.9%, and urban railway bonds 13.9%.

Special bonds including general special bonds, special finance bonds, and local public corporation bonds were registered at KRW 176.3174 trillion. This is a 1.4% decrease compared to the previous year (KRW 178.8741 trillion).

Additionally, corporate bonds including general corporate bonds, financial company bonds, securitized SPC bonds, and quasi-collective investment institution bonds were registered at KRW 252.668 trillion. This is a 12.5% increase compared to 2020 (KRW 224.5476 trillion). CDs (certificates of deposit) increased by 34.2%, from KRW 24.53 trillion to KRW 32.9149 trillion last year.

Among mezzanine securities (equity-linked bonds), convertible bonds were issued at KRW 9.5283 trillion, a 55.3% increase compared to the previous year (KRW 6.1351 trillion). Also, the issuance volume of exchangeable bonds rose from KRW 1.2103 trillion to KRW 1.6239 trillion, and bonds with warrants increased from KRW 686.4 billion to KRW 701.5 billion, showing growth rates of 34.1% and 2.2%, respectively.

By maturity structure, short-term bonds amounted to KRW 106.1 trillion, medium-term bonds KRW 215.2 trillion, and long-term bonds KRW 133.4 trillion. Among the total issuance scale, short-term bonds accounted for 23.3%, medium-term bonds 47.3%, and long-term bonds 29.3%.

By offering type, public bonds were issued at KRW 404 trillion, accounting for 88.9%, while private bonds were issued at KRW 50.7 trillion, representing 9.9%. Private bonds composing the underlying assets of P-CBOs issued at KRW 5.5 trillion accounted for 1.2%. P-CBO (Primary-Collateralized Bond Obligations) are securitized bonds issued based on newly issued bonds as underlying assets.

Regarding foreign currency-denominated bonds, only dollar (USD) bonds were registered at KRW 1.033 trillion last year. This represents an increase of about 294.1% compared to the previous year (KRW 287.5 billion).

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