It was tallied that capital raised by domestic corporations through direct financing last month increased sharply. Initial public offerings (IPO) and paid-in capital increases decreased, but corporate bond issuance surged.
The Financial Supervisory Service said on the 29th that funds raised by corporations by issuing stocks or corporate bonds in September totaled 2.86941 trillion won, up 917.83 billion won (47%) from the previous month.
Direct financing refers to a method in which a company raises funds by issuing stocks or bonds directly without going through a financial company.
The amount of funds raised through stocks last month was 369.8 billion won, down 516.4 billion won (58.3%) from the previous month. IPOs decreased by 53.7 billion won (18.1%) from the previous month, and paid-in capital increases fell by 462.7 billion won (78.5%). In IPOs, Myung In Pharm raised 197.2 billion won in a large-scale fundraising, but the number of issuances and the total amount declined sharply. In paid-in capital increases, all four cases were small issuances by KOSDAQ corporations, reducing both the number of deals and the amount raised.
In contrast, 2.83243 trillion won in corporate bonds were issued, up 969.47 billion won (52%) from the previous month. General corporate bonds saw 57 issuances totaling 571.3 billion won, marking a 562.8% increase during the period. By use of funds, the share of bond issuance for refinancing purposes decreased from 94.5% to 77.2%, while operating and facility purposes rose from 5.5% to 18.5% and from 0% to 4.4%, respectively.
Financial bonds totaled 2.06718 trillion won, up 373.09 billion won (22%) during the period. The total outstanding balance of corporate bonds increased to 741.8878 trillion won and has been rising steadily since June last year.
Commercial paper (CP) and short-term bonds totaled 150.0326 trillion won last month, up 16.0488 trillion won from the previous month. During the period, CP increased by 9.8386 trillion won and short-term bonds by 6.2102 trillion won.