Last Month's Stock and Corporate Bond Issuance Up 58%... Paid-in Capital Increase Surges 186.3%

Last month, the issuance performance of stocks and corporate bonds increased by 57.8% compared to the previous month.

According to the 'Direct Financing Performance of Corporations in January' announced by the Financial Supervisory Service on the 27th, the scale of stock issuance last month was 9 cases, totaling 1.4881 trillion KRW, a sharp increase of 902.4 billion KRW (154.1%) compared to 16 cases and 585.7 billion KRW in the previous month.

In the case of Initial Public Offerings (IPO), there were 6 cases amounting to 138 billion KRW, an increase of 23.8 billion KRW (20.9%) from 5 cases and 114.2 billion KRW in the previous month. Paid-in capital increases were recorded at 3 cases totaling 1.3501 trillion KRW, due to the impact of paid-in capital increases by KOSPI-listed companies such as Lotte Chemical and Hanwha Solutions, up 878.6 billion KRW (186.3%) from 11 cases and 471.5 billion KRW in the previous month.

The scale of corporate bond issuance also increased significantly. Last month, corporate bond issuance amounted to 16.8923 trillion KRW, up 5.8268 trillion KRW (52.7%) from 11.065 trillion KRW in the previous month.

General corporate bonds increased by 5.0589 trillion KRW (472.8%) to 6.1289 trillion KRW across 51 cases, compared to 10 cases and 1.07 trillion KRW in the previous month. As in the previous month, only short- and medium-term bonds were issued, mainly high-grade bonds rated AA or higher (5.835 trillion KRW, 96.3%).

Financial bonds totaled 162 cases amounting to 10.5604 trillion KRW, an increase of 1.6569 trillion KRW (18.6%). Unlike the previous month when there were no issuances, financial holding companies issued 10 cases totaling 1.55 trillion KRW. Bank bonds accounted for 9 cases and 2.2204 trillion KRW, while other financial bonds totaled 143 cases and 6.79 trillion KRW.

Asset-backed securities (ABS) amounted to 27 cases and 203 billion KRW, down 889 billion KRW (81.4%) from 77 cases and 1.092 trillion KRW in the previous month. P-CBOs, which are ABS issued with credit enhancement by institutions such as the Korea Credit Guarantee Fund to facilitate funding for small and medium-sized enterprises, were not issued last month as in the previous month.

As of the end of last month, the total outstanding balance of corporate bonds was 625.6408 trillion KRW, an increase of 2.1311 trillion KRW (0.3%) from 623.5097 trillion KRW in the previous month. Net issuance of general corporate bonds continued.

Commercial paper (CP) and short-term bond issuance totaled 99.1156 trillion KRW, a decrease of 4.3828 trillion KRW (4.2%) from 103.4985 trillion KRW in the previous month. CP amounted to 34.0376 trillion KRW, down 4.8069 trillion KRW (12.4%). General CP and PF-ABCP increased by 2.7% and 62.4% to 23.1427 trillion KRW and 2.6336 trillion KRW, respectively. Other ABCP sharply declined by 43.8% to 8.2613 trillion KRW. The outstanding balance of CP at the end of last month was 218.1886 trillion KRW, up 5.3893 trillion KRW (2.5%).

Short-term bonds totaled 65.0781 trillion KRW, up 424 billion KRW (0.7%), with general short-term bonds and other AB short-term bonds decreasing by 6.4% and 9.0%, respectively. On the other hand, PF-AB short-term bonds increased by 35.3% to 15.7161 trillion KRW compared to the previous month. The outstanding balance of short-term bonds as of the end of last month was 73.7067 trillion KRW, up 767.2 billion KRW (1.1%).

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