Corporate Fundraising via Short-Term Bonds Hits 383 Trillion Won in Q1, Up 50% Year-on-Year

In the first quarter of this year, the amount of funds raised by companies through short-term bonds (STB) reached 383.2 trillion won, a 50.0% increase compared to the same period last year. Short-term bonds are corporate bonds issued with specific conditions, such as a maturity of one year or less and an issuance amount of at least 100 million won. The issuance, distribution, and exercise of rights for these bonds are processed electronically through an electronic registration agency.


Korea Securities Depository.

Korea Securities Depository.

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According to the Korea Securities Depository on April 14, by type, general short-term bonds issued by financial institutions and general corporations amounted to 297.2 trillion won, marking a 62.8% increase from a year earlier. Asset-backed short-term bonds issued by special purpose companies (SPCs) totaled 86 trillion won, up 18.0% over the same period.


By credit rating, the amount issued with the highest A1 rating was 363.3 trillion won, accounting for 94.8% of total issuance.


By maturity, bonds with a maturity of three months (92 days) or less accounted for 382 trillion won, representing 99.7% of the total, while those with maturities between 93 and 365 days amounted to 1.2 trillion won, or 0.3%.


By industry, securities companies accounted for 207.8 trillion won, special purpose companies for 86.1 trillion won, other financial businesses such as card and capital companies for 50.4 trillion won, and general and public corporations for 38.9 trillion won.

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