Financial Supervisory Service Announces November Corporate Direct Financing Performance
Corporate Bonds Also Decrease by 17%
Last month, the scale of stock issuance decreased by 36.8%. This was due to the absence of major initial public offerings (IPOs) amid a sluggish domestic stock market. Corporate bond issuance also declined by 17.7% due to seasonal factors.
According to the "Direct Financing Performance of Corporations in November" released by the Financial Supervisory Service on the 23rd, the total amount of corporate stock and bond issuance last month was 25.5901 trillion KRW, down 17.7% from the previous month. Compared to the same period last year, it decreased by 3.1%.
Stock issuance increased through paid-in capital increases compared to the previous month, but the overall scale shrank due to the absence of large IPO deals. Last month, the stock issuance amounted to 485.5 billion KRW, down 36.8% from the previous month and plummeting 84.5% compared to the same period last year.
The number of listings last month was 12, raising a total of 187.5 billion KRW. The average size per listing (15.6 billion KRW) also decreased compared to the previous month's average of 37.6 billion KRW.
There were a total of 8 paid-in capital increases last month, increasing by 170.3 billion KRW (133.4%) compared to the previous month. This was influenced by the rise in the number and scale of paid-in capital increases among small and medium-sized enterprises.
General corporate bond issuance totaled 25 cases, with an issuance scale of 2.14 trillion KRW. This represents a 57.4% decrease compared to October. The proportion of refinancing issuance increased, while issuance for operational and facility funds decreased. Issuance of high-grade corporate bonds rated 'AA' or higher declined, whereas issuance rated 'A' or below increased.
In the case of financial bonds, 21.096 trillion KRW was issued, down 7.9% from the previous month. Bonds issued by financial holding companies decreased by 73.1% compared to the previous month, while bank bonds and other financial bonds saw a slight decrease compared to the previous month.
As of the end of last month, the total outstanding corporate bonds amounted to 689.0075 trillion KRW, an increase of 0.9% compared to the end of the previous month. General corporate bonds maintained a net issuance trend as new issuance exceeded matured amounts last month.
The total issuance of commercial paper (CP) and short-term bonds was 111.2058 trillion KRW, with both CP and short-term bond issuance decreasing compared to the previous month.
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