Financial Supervisory Service /Courtesy of FSS

The amount corporations raised by issuing stocks and corporate bonds last month was 26 trillion won, a decrease of more than 17% compared to the previous month.

On the 23rd, the Financial Supervisory Service noted that the total issuance amount of stocks and corporate bonds by corporations in November was 25.59 trillion won, down 17.7% from the previous month and 3.1% from the same month last year.

Among this, the issuance of stocks fell to 4.855 trillion won, a decrease of 36.8% compared to the previous month. The initial public offering (IPO) shrank from 6.4 trillion won to 1.875 trillion won. Although the rights offerings increased from 1.277 trillion won to 2.980 trillion won during this period, it was not enough to offset the decline in IPO.

The performance of general corporate bonds issued fell by 57.4% to 2.14 trillion won compared to the previous month. By credit rating, the proportion of high-quality bonds rated AA or higher decreased from 57.1% to 53.3%. The issuance proportion of low-quality bonds increased.

By maturity, the proportion of long-term bonds exceeding 5 years increased from 1.6% to 12.6%, while the proportion of short-term bonds below 1 year (1.0% to 0.7%) and medium-term bonds from over 1 year to 5 years (97.4% to 86.7%) decreased.

Financial bonds recorded 21.096 trillion won, a 7.9% decrease compared to the previous month. The issuance of financial holding company bonds (5.2 trillion won) decreased the most at 73.1%. Bank bonds (83.34 trillion won) also decreased by 6.9%, while other financial bonds (122.42 trillion won) increased by 1.7%.

Asset-backed securities (ABS) saw a 21.5% decrease to 1.8686 trillion won compared to the previous month. Primary collateralized bond obligations (P-CBO) issued with credit enhancement from the credit guarantee fund increased by 15.1% to 738.6 billion won.

As of the end of last month, the total balance of corporate bonds was 689.075 trillion won, increasing by 0.9% compared to the end of the previous month. The new issuance of general corporate bonds (2.14 trillion won) exceeded the matured amount (1.613 trillion won), maintaining a net issuance trend.

The issuance scale of corporations' commercial papers (CP) and short-term bonds last month was 111.2058 trillion won, down 13.1% compared to the previous month. Among this, CP decreased by 9.3% to 40.7468 trillion won, while short-term bonds fell by 15.2% to 70.4590 trillion won.

Accordingly, the balance of CP increased by 1.4% from the end of the previous month to 211.8069 trillion won, while the short-term bond balance decreased by 1.0% to 62.3214 trillion won.