Q1 DLS Issuance at 5.2 Trillion Won, 5% Decrease from Previous Quarter

[Asia Economy Reporter Lee Seon-ae] The issuance amount of DLS (including DLB) in the first quarter has decreased.

According to the Korea Securities Depository on the 20th, the issuance amount of DLS in the first quarter was 5.2519 trillion won, down 0.9% from the same period last year (5.3018 trillion won). It decreased by 4.7% compared to the previous quarter (5.5104 trillion won).

As of the end of March, the outstanding balance of unpaid DLS issuance was 26.961 trillion won, down 22.0% from the same period last year (34.5666 trillion won). Compared to the previous quarter (26.9008 trillion won), it increased by 0.2%.

Looking at DLS by issuance type, public offerings accounted for 10.7% (560.9 billion won) and private placements accounted for 89.3% (4.691 trillion won) of the total issuance amount.

The public offering issuance amount decreased by 66.6% compared to the same period last year (1.6792 trillion won) and by 76.6% compared to the previous quarter (2.3989 trillion won). The private placement issuance amount increased by 29.5% compared to the same period last year (3.6226 trillion won) and by 50.8% compared to the previous quarter (3.1115 trillion won).

By underlying asset type, interest rate-linked DLS accounted for 58.8% of the total issuance amount, or 3.0866 trillion won; credit-linked DLS accounted for 26.8%, or 1.4107 trillion won; and hybrid DLS accounted for 11.8%, or 619.7 billion won. These three types accounted for 97.4% of the total issuance amount, or 5.117 trillion won.

A total of 18 companies issued DLS, with Hana Financial Investment issuing 709 billion won, the largest amount. The top five companies’ DLS issuance amounted to 3.2851 trillion won, accounting for 62.6% of the total issuance amount (5.2519 trillion won).

The total repayment amount of DLS in the first quarter was 5.5612 trillion won, down 37.4% from the same period last year (8.8773 trillion won) and down 19.1% from the previous quarter (6.8746 trillion won).

By repayment type, early redemption amounted to 3.2322 trillion won, accounting for 58.1% of the total repayment amount. Maturity redemption and mid-term redemption amounted to 2.1854 trillion won and 143.6 billion won, respectively, accounting for 39.3% and 2.6% of the total repayment amount.