Outstanding ELS Issuance Balance in Q3 at 64.2468 Trillion Won... 3.0% Decrease from Previous Quarter

As the stock market showed strength this year, the outstanding issuance balance of equity-linked securities (ELS) has decreased for three consecutive quarters.

According to the Korea Securities Depository on the 18th, as of the end of September, the outstanding issuance balance of ELS stood at 64.2468 trillion won, down 6.5% compared to the same period last year. It decreased by 3.0% compared to the previous quarter.

In the third quarter of this year, the number of ELS (including ELB) issued was 3,945, up 20.9% year-on-year but down 9.3% quarter-on-quarter. The issuance amount was 9.9228 trillion won, an increase of 25.3% year-on-year but a decrease of 18.6% quarter-on-quarter. The issuance amount is interpreted to have decreased compared to the second quarter as the stock market showed a sluggish trend in the third quarter.

By issuance type, public offerings accounted for 91.5% (9.0747 trillion won) and private placements for 8.5% (848.1 billion won) of the total issuance amount. The public offering issuance amount increased by 31.2% year-on-year but decreased by 20.3% quarter-on-quarter. On the other hand, the private placement issuance amount decreased by 15.3% year-on-year but increased by 4.7% quarter-on-quarter.

By underlying asset type, index-linked ELS based on overseas and domestic indices accounted for 74.0% of the total issuance amount, or 7.3376 trillion won, while domestic stock-linked ELS based on individual domestic stocks accounted for 16.4%, or 1.6289 trillion won.

By index, ELS based on the Nikkei 225 overseas index was issued at 3.2306 trillion won, up 32.8% quarter-on-quarter. Meanwhile, ELS based on the S&P 500, Euro Stoxx 50, and Hang Seng China Enterprises Index (HSCEI) were issued at 6.2402 trillion won, 5.7401 trillion won, and 1.3537 trillion won respectively, down 27.9%, 26.8%, and 34.2% quarter-on-quarter. ELS based on the domestic KOSPI 200 index was issued at 3.0919 trillion won, down 27.2% quarter-on-quarter.

A total of 22 securities firms issued ELS, with Hana Securities issuing the most at 912.5 billion won, followed by Shinhan Investment Corp. with 904.1 billion won. The top five securities firms accounted for 4.423 trillion won in ELS issuance, representing 44.6% of the total issuance amount.

The total redemption amount of ELS in the third quarter was 11.9813 trillion won, up 79.2% year-on-year but down 12.2% quarter-on-quarter. By redemption type, early redemption amounted to 9.7375 trillion won, accounting for 81.3% of the total redemption amount, while maturity redemption and mid-term redemption amounted to 1.8556 trillion won and 388.2 billion won respectively, accounting for 15.5% and 3.2% of the total redemption amount.