Q3 ELS Outstanding Issuance Balance 68.7442 Trillion Won... 29% Increase YoY

[Asia Economy Reporter Minji Lee] According to the Korea Securities Depository, as of the end of last month, the outstanding balance of unpaid ELS issuance stood at 68.7442 trillion KRW, marking a 29.4% increase compared to the same period last year, the organization announced on the 18th. This represents a 2.4% increase compared to the end of the previous quarter. Although issuance volume decreased, the outstanding balance grew due to a shrinkage in repayment amounts amid global stock market sluggishness.

The total ELS repayment amount in the third quarter was 6.6843 trillion KRW, down 44.1% year-on-year. By repayment type, early redemption accounted for 5.0574 trillion KRW, representing 75.7% of the total repayment amount. Maturity redemption and mid-term redemption amounted to 1.0449 trillion KRW and 582 billion KRW, respectively, accounting for 15.6% and 8.7% of the total repayment amount.

The number of ELS issued in the third quarter was 3,264, down 18.1% year-on-year and 17.3% compared to the previous quarter. Issuance volume was 7.9194 trillion KRW, decreasing 31.7% year-on-year and 31.6% quarter-on-quarter.

By issuance type, public offerings accounted for 87.4% of total issuance volume, totaling 6.9184 trillion KRW, while private placements amounted to 1.001 trillion KRW, representing 12.6%. Public offering issuance volume decreased 30.7% year-on-year, and private placement issuance volume fell 38.2%.

By underlying asset, index-linked ELS based on overseas and domestic indices accounted for 76.2% of total issuance volume, totaling 6.0339 trillion KRW. Domestic stock-linked ELS, based on individual domestic stocks, amounted to 1.2493 trillion KRW, representing 15.8%.

ELS based on overseas indices such as the S&P 500 and Euro Stoxx 50 were issued at 5.079 trillion KRW and 4.9731 trillion KRW, respectively, decreasing 36.6% and 37.5% compared to the previous quarter. ELS linked to HSCEI (Hong Kong H Index), Nikkei 225, and HSI indices were issued at 1.1169 trillion KRW, 640.1 billion KRW, and 2.2 billion KRW, respectively, down 25.8%, 38.5%, and 55.1% quarter-on-quarter. ELS based on the domestic KOSPI 200 index were issued at 3.4931 trillion KRW, a 31.8% decrease.

By issuing company, a total of 22 firms participated in issuance, with Hana Securities leading at 1.0454 trillion KRW. Following was Mirae Asset Securities with 862.5 billion KRW issued. The top five securities firms’ ELS issuance volume totaled 4.0527 trillion KRW, accounting for 51.2% of total issuance volume.

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