Electronic Registration Issuance of Bonds and CDs in Q1 Reaches 114.1 Trillion Won, Up 12.6% Year-on-Year

[Asia Economy Reporter Lee Seon-ae] The scale of corporate and other entities' fundraising through the electronic registration system for bonds and negotiable certificates of deposit (CDs) in the first quarter of this year was approximately KRW 114.1 trillion. This represents an increase of 12.6% compared to the same period last year (KRW 101.3 trillion) and 8.5% compared to the previous quarter (KRW 105.1 trillion).

According to the Korea Securities Depository on the 15th, the registered issuance volume of bonds in the first quarter was about KRW 105.8 trillion, up 8.7% year-on-year and 6.1% quarter-on-quarter.

The registered issuance volume of CDs was about KRW 8.3 trillion, a sharp increase of 107.5% compared to the same period last year (KRW 4 trillion). It also rose 53.7% compared to the previous quarter (KRW 5.4 trillion).

The registered issuance volume by type of bond was ▲National Housing Bonds KRW 4.7 trillion ▲Local Government Bonds KRW 1.5 trillion ▲Corporate Bonds including Financial Company Bonds and Special Purpose Company (SPC) Bonds KRW 61.7 trillion ▲Special Bonds KRW 37.3 trillion ▲Local Public Corporation Bonds KRW 600 billion ▲CDs KRW 8.3 trillion.

The proportion of registered issuance by type was Special Bonds (32.7%), Financial Company Bonds (29.5%), General Corporate Bonds (18.3%), CDs (7.3%), SPC Bonds (6.2%), National Housing Bonds (4.1%), Local Government Bonds (1.3%), and Local Public Corporation Bonds (0.5%) in that order.

For Local Government Bonds, a total of KRW 1.5 trillion was registered and issued, down 28.6% year-on-year and 21.1% quarter-on-quarter. By maturity, long-term bonds (over 3 years) accounted for most with KRW 1.3232 trillion (89.8%) issued. Medium-term bonds (over 1 year to 3 years) issued KRW 150 billion (10.2%). There were no short-term bonds (1 year or less) issued in the first quarter.

For Financial Company Bonds, a total of KRW 33.7 trillion was registered and issued, up 18.7% year-on-year but down 2.9% quarter-on-quarter. By maturity, issuance volume was medium-term bonds KRW 20.5898 trillion (61.0%), long-term bonds KRW 10.685 trillion (31.7%), and short-term bonds KRW 2.458 trillion (7.3%) in that order.

For General Corporate Bonds, a total of KRW 20.9 trillion was registered and issued, increasing 31.4% year-on-year and 78.6% quarter-on-quarter. By maturity, medium-term bonds accounted for 51.4% with KRW 10.7199 trillion, long-term bonds 47.4% with KRW 9.8877 trillion, and short-term bonds KRW 267.4 billion (1.3%) in that order.

For Securitization SPC Bonds, a total of KRW 7.1 trillion was registered and issued, down 6.6% year-on-year and 37.2% quarter-on-quarter. By maturity, medium-term bonds accounted for KRW 3.7248 trillion (52.2%), short-term bonds KRW 2.272 trillion (31.9%), and long-term bonds KRW 1.1327 trillion (15.9%).

For Special Bonds, a total of KRW 37.3 trillion was registered and issued, down 3.1% year-on-year but up 8.4% quarter-on-quarter. By maturity, issuance volume was short-term bonds KRW 14.94 trillion (40.1%), medium-term bonds KRW 14.3928 trillion (38.6%), and long-term bonds KRW 7.9216 trillion (21.3%) in that order.

Local Public Corporation Bonds totaled KRW 600 billion registered and issued, increasing 200% year-on-year but decreasing 14.3% quarter-on-quarter. By maturity, issuance volume was short-term bonds KRW 150 billion (24.2%), medium-term bonds KRW 318.9 billion (51.4%), and long-term bonds KRW 151 billion (24.4%).