Corporate Bond Issuance Down 6.6% Last Month... CP and Short-Term Bonds Up 25.6%

Although the scale of corporate bond issuance decreased by about 7% compared to the previous month, stocks, commercial papers (CP), and short-term bonds increased. In particular, the issuance performance of CP and short-term bonds increased by more than 25% compared to the previous month.

According to the "Direct Financing Performance of Corporations in March" announced by the Financial Supervisory Service on the 21st, the scale of corporate bond issuance last month was 18.6963 trillion won, down 6.6% from 20.0127 trillion won in the previous month.

General corporate bonds amounted to 45 cases, 4.703 trillion won, down 44.2% from 3.721 trillion won in the previous month. The proportion of refinancing funds decreased last month, while the proportion of operating and facility funds increased. In addition, issuance focused on medium-term bonds continued. Bonds were issued mainly with high credit ratings of AA or higher (3.4 trillion won, 76.8%).

Financial bonds amounted to 191 cases, 12.674 trillion won, an increase of 2.0423 trillion won (19.2%) compared to the previous month. Financial holding company bonds were 3 cases, 316 billion won, and bank bonds were 27 cases, 4.97 trillion won. Other financial bonds amounted to 161 cases, 7.388 trillion won.

Asset-backed securities (ABS) totaled 75 cases, 1.3193 trillion won, an increase of 362.3 billion won (37.9%) compared to the previous month. P-CBOs, which are ABS issued with credit enhancement by credit guarantee funds to facilitate funding for small and medium-sized enterprises, were 7 cases, 584.3 billion won, up 299.3 billion won from the previous month.

As of the end of last month, the total outstanding amount of corporate bonds was 629.1665 trillion won, up 0.3% from 627.5913 trillion won in the previous month. Net issuance of general corporate bonds continued.

The scale of stock issuance was 11 cases, 249.1 billion won, up 4.6% from 11 cases, 238.1 billion won in the previous month. Initial public offerings (IPO) were 9 cases, 184.6 billion won, down 2 cases, 53.5 billion won (22.5%) from 11 cases, 238.1 billion won in the previous month. Paid-in capital increases were 2 cases, 64.5 billion won, an increase compared to no issuance in the previous month.

The issuance performance of commercial papers (CP) and short-term bonds was 118.1733 trillion won, up 24.0633 trillion won (25.6%) from 94.11 trillion won in the previous month.

CP issuance totaled 31.3651 trillion won, a 6.6% increase from 29.4151 trillion won. General CP was 19.6277 trillion won, and other ABCP was 9.3912 trillion won, increasing by 10.1% and 8.0%, respectively. PF-ABCP was 2.3462 trillion won, down 18.9%.

At the end of last month, the outstanding balance of CP was 203.8047 trillion won, down 9.3351 trillion won (4.4%) from the previous month.

Short-term bonds totaled 86.8082 trillion won, up 22.1133 trillion won (34.2%) from the previous month. General short-term bonds were 62.3202 trillion won, PF-AB short-term bonds were 15.0349 trillion won, and other AB short-term bonds were 9.4532 trillion won, increasing by 51.5%, 5.7%, and 1.1%, respectively. At the end of last month, the outstanding balance of short-term bonds was 70.0677 trillion won, down 1.7272 trillion won (2.5%).