Effect of Samsung Biologics' Capital Increase... Stock Issuance Volume Last Month Up 263.5%

[Asia Economy Reporter Lee Jung-yoon] Due to the impact of Samsung Biologics' rights offering worth 3 trillion KRW, the scale of stock issuance surged last month. Direct financing performance through corporate bonds also increased, while short-term fund procurement decreased.

According to the 'April Corporate Direct Financing Performance' announced by the Financial Supervisory Service on the 26th, the total issuance of stocks and corporate bonds last month recorded 20.1117 trillion KRW. This is an increase of 6.2511 trillion KRW compared to the previous month.

Last month's stock issuance amounted to 3.4911 trillion KRW (9 cases), up 2.5306 trillion KRW (263.5%) from 960.5 billion KRW (12 cases) in the previous month. The increase in issuance scale was due to Samsung Biologics, a KOSPI-listed company, conducting a rights offering worth 3.2 trillion KRW.

Initial Public Offerings (IPOs) amounted to 64.1 billion KRW (5 cases), down 33.9 billion KRW (34.6%) from 98 billion KRW (7 cases) in the previous month. All 5 cases were public offerings for KOSDAQ listings of small and medium-sized enterprises and Special Purpose Acquisition Companies (SPACs). Rights offerings totaled 4 cases, 3.427 trillion KRW, with one fewer issuance than the previous month but an increase of 2.5645 trillion KRW (297.3%) in issuance amount.

Corporate bond issuance totaled 16.6206 trillion KRW, an increase of 3.7205 trillion KRW (28.8%) from 12.9001 trillion KRW in the previous month. General corporate bonds increased by 3.163 trillion KRW to 5 trillion KRW from 1.837 trillion KRW in the previous month. In April, the proportion of refinancing and facility funds decreased, while operating funds increased, with continued issuance focused on medium-term bonds (maturity over 1 year to 5 years) and long-term bonds (over 5 years). Additionally, with the resumption of AA-rated corporate bond issuance last month, the proportion of high-quality bonds rose significantly to 85.8% in April from 39.3% in the previous month.

Financial bond issuance amounted to 10.0992 trillion KRW (223 cases), an 8.0% increase from the previous month. Meanwhile, asset-backed securities (ABS) issuance totaled 1.5214 trillion KRW (90 cases), down 11.2%. This was influenced by the decrease in Primary Collateralized Bond Obligations (P-CBOs), which are issued with credit enhancement from institutions like the Korea Credit Guarantee Fund to facilitate funding for small and medium-sized enterprises, amounting to 682 billion KRW last month, down 143.4 billion KRW from the previous month.

The total outstanding corporate bonds reached 630.5089 trillion KRW, an increase of 1.7293 trillion KRW from the previous month.

On the other hand, last month's issuance of Commercial Paper (CP) and short-term bonds amounted to 137.3035 trillion KRW, down 8.2% (12.2159 trillion KRW) from the previous month. CP issuance increased by 16.3% to 36.4242 trillion KRW, while short-term bond issuance decreased by 14.7% to 100.8793 trillion KRW.

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