"Stock and Corporate Bond Issuance in July Hits 28 Trillion Won, Up 18% from Previous Month"

Stock Issuance Surges to 5 Trillion Won, Up 1,127% from Previous Month
Financial Supervisory Service Releases July Direct Financing Results for Companies

In July of this year, the amount of funds raised by domestic companies through the issuance of stocks and corporate bonds increased by nearly 18% compared to the previous month. This was largely due to a significant rise in public offerings of stocks, driven by large-scale initial public offerings (IPOs) and paid-in capital increases.

According to the "Direct Financing Performance of Companies in July" released by the Financial Supervisory Service on the 26th, the total amount of public offerings of stocks and corporate bonds in July was 28.2484 trillion won, up 17.9% (4.2943 trillion won) from the previous month.

The amount of stock issuance reached 4.8135 trillion won, marking a 1127% increase from the previous month. IPOs and paid-in capital increases recorded 514.2 billion won and 4.1836 trillion won, respectively, representing increases of 444.2% and 1412.9%. Hanwha Aerospace and POSCO Future M raised 2.9188 trillion won and 1.107 trillion won, respectively, through paid-in capital increases.

The amount of corporate bond issuance was 23.4349 trillion won, a decrease of 0.5% (126.9 billion won) from the previous month. General corporate bonds amounted to 2.978 trillion won, down 13.1% (448 billion won) from the previous month. In terms of fund usage, the proportion of corporate bonds issued for refinancing purposes rose from 57.2% to 93.0%, while the proportions for operating and facility purposes declined from 33.5% to 7.0% and from 9.3% to 0%, respectively.

By credit rating, the proportion of corporate bonds rated AA or above and those rated BBB or below decreased from 56.5% to 44.9% and from 6.6% to 5.4%, respectively. In contrast, the proportion of bonds rated A increased from 36.9% to 49.6%.

The outstanding balance of corporate bonds was 725.5888 trillion won, up 0.7% (5.3744 trillion won) from the previous month. For general corporate bonds, the redemption amount was 3.616 trillion won, exceeding the issuance amount of 2.978 trillion won, resulting in a net redemption of 638 billion won.

The issuance of commercial paper (CP) and short-term bonds amounted to 138.8654 trillion won, a 13.0% (15.9954 trillion won) increase from the previous month.

General CP issuance was 24.0945 trillion won, project financing asset-backed commercial paper (PF-ABCP) was 2.3997 trillion won, and other ABCP was 20.0044 trillion won, each increasing by 11.1%, 26.6%, and 28.9% from the previous month, respectively. The outstanding balance was 223.2777 trillion won, up 3.4% (7.3135 trillion won) from the previous month.

Short-term bonds amounted to 92.3669 trillion won, a 10.3% (8.5948 trillion won) increase from the previous month. General short-term bonds were 65.8748 trillion won, and PF-AB short-term bonds were 13.7387 trillion won, increasing by 20% and 0.3%, respectively. Other AB short-term bonds were 12.7534 trillion won, down 15.8%. The outstanding balance was 75.1811 trillion won, a decrease of 5.2% (4.0859 trillion won) from the previous month.

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