Wed, 01 Dec 2021

S.Korea's corporate bond issuance falls in October

23 Nov 2021, 19:05 GMT+10

SEOUL, Nov. 23 (Xinhua) -- South Korea's corporate bond issuance fell last month on higher borrowing cost, financial watchdog data showed Tuesday.

The sale of corporate bonds came in at 16.67 trillion won (14 billion U.S. dollars) in October, down 5.3 percent from the previous month, according to the Financial Supervisory Service (FSS).

It was attributable to higher borrowing cost. The country's central bank raised its key rate by 25 basis points to 0.75 percent in August.

Bonds, issued by industrial companies, tumbled 35.3 percent to 3.2 trillion won (2.7 billion U.S. dollars) last month.

The issuance of bonds by financial companies gained 3.8 percent to 12.08 trillion won (10.2 billion U.S. dollars), and the sale of asset-backed securities (ABS) jumped 38.8 percent in October compared to the prior month.

Meanwhile, the equity financing, including the initial public offering (IPO) and rights issuance, stood at 2.49 trillion won (2.1 billion U.S. dollars) in October, up 22.1 percent from a month earlier.

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