Korean securities issues stayed vigorous in January, mostly in investment-grade debt, to capitalize on cheap and ample liquidity market, amid signs of fizzling-out in retail stock fad.
According to data released by the Financial Supervisory Service (FSS) on Tuesday, Korean companies raised total 15.47 trillion won ($13.91 billion) in funds by selling stocks and bonds in January, up 12 percent from a month ago. The bulk came from debt.
Stock issuance fell 40.8 percent to 1.91 trillion won from December but 3,908 percent higher against a year ago. Initial public offerings fell 11 percent on month to 289.6 billion won.
A total 10 companies made debuts in January, down from 15 a month ago—Solum Co. on the main Kospi and nine on secondary Kosdaq including NBT Inc., Sunjin Beauty Science Co., and Wider Planet Inc.
Rights offering fell 44.1 percent from the previous month. Secondary offerings shrank both in number and volume, the FSS said.
The debt market remained robust.
Issues of corporate bonds gained 28.1 percent on year to 13.56 trillion won.
Corporate bond offering jumped 330.9 percent against a month ago to 4.52 trillion won, mostly in papers dated more than a year by issuers of AA or higher grade to refinance debt. Issues by financial institutions added 0.2 percent to 8.43 trillion won. Asset-backed securities issues contracted 45.7 percent to 609 billion won. Issues of bonds rated ‘AA’ or higher expanded 52.4 percentage points from a month ago.
[Source: Financial Supervisory Service]
The corporate bond balance as of late Jan. stood at 578.82 trillion won, up 0.3 percent from the previous month.
Commercial paper and short-term debenture issuance fell 10.8 percent on month to 108.17 trillion won.
A total 26.84 trillion won worth of commercial paper was issued in January, down 13.3 percent from the previous month, and 81.33 trillion won worth of short-term debentures, down 10 percent.
By Lee Soo-min
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]