In September of this year, the amount of funds raised by domestic companies through the issuance of stocks and corporate bonds increased by 47% compared to the previous month. This was largely due to a nearly 10 trillion won increase in corporate bond issuance.
According to the 'Direct Financing Performance of Companies in September' released by the Financial Supervisory Service on October 29, the total amount of public offerings of stocks and corporate bonds in September was 28.6941 trillion won, an increase of 47% (9.1783 trillion won) from the previous month.
The volume of stock issuance in September was 369.8 billion won, a decrease of 58.3% (516.4 billion won) from the previous month. Initial public offerings accounted for 243.1 billion won and paid-in capital increases for 126.7 billion won, down by 18.1% and 78.5%, respectively.
On the other hand, the amount of corporate bond issuance was 28.3243 trillion won, up 52% (9.6947 trillion won) from the previous month. General corporate bonds surged to 5.713 trillion won, a sharp increase of 562.8% (4.851 trillion won). In terms of the purpose of funds, the proportion for refinancing decreased from 94.5% to 77.2%, while the share for operating and facility purposes increased from 5.5% and 0% to 18.5% and 4.4%, respectively.
By credit rating, the proportion of corporate bonds rated AA or higher rose from 55% to 66.5%. In contrast, the share of A-rated and BBB-rated or lower bonds dropped from 26.9% and 18.2% to 25.9% and 7.6%, respectively.
The outstanding balance of corporate bonds stood at 741.8878 trillion won, up 1.9% (13.6117 trillion won) from the previous month. General corporate bonds shifted to net issuance as the amount issued exceeded the redemption amount by 2.763 trillion won.
In September, the issuance of commercial papers (CP) and short-term bonds reached 150.0326 trillion won, a 12% (16.0488 trillion won) increase from the previous month.
The amount of CP issuance was 48.021 trillion won, up 25.8% (9.8386 trillion won) from the previous month. Of this, general CP accounted for 25.183 trillion won and other asset-backed commercial papers (ABCP) for 20.7943 trillion won, up 11% and 55.5%, respectively. In contrast, PF-ABCP fell by 3.1% to 2.0437 trillion won. The outstanding balance was 230.3848 trillion won, an increase of 1.8% (4.1437 trillion won) compared to the end of the previous month.
The issuance of short-term bonds was 102.0116 trillion won, up 6.5% (6.2102 trillion won). General short-term bonds accounted for 71.0483 trillion won and PF-AB short-term bonds for 15.9355 trillion won, up 6.6% and 13%, respectively. In contrast, other AB short-term bonds decreased by 0.2% to 15.0227 trillion won. The outstanding balance was 81.8341 trillion won, up 7.3% (5.5973 trillion won).
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