Tue, 26 Sep 2023

SEOUL, March 28 (Xinhua) -- South Korea's corporate bond sale logged a double-digit growth last month owing to strong demand from industrial companies, financial watchdog data showed on Tuesday.

The issuance of corporate bonds came in at 20.01 trillion won (15.4 billion U.S. dollars) in February, up 18.5 percent from the previous month, according to the Financial Supervisory Service (FSS).

Despite rapid interest rate hikes, industrial companies mainly sold medium-term bonds to refinance debts and raise facility funds, the FSS said.

The country's central bank hiked its policy rate since August 2021 from a record low of 0.50 percent to 3.50 percent.

Bonds, sold by industrial companies, came to 8.42 trillion won (6.5 billion dollars) in February, up 37.4 percent from a month earlier.

Financial company-issued bonds added 0.7 percent to 10.63 trillion won (8.2 billion dollars), while the issuance of asset-backed securities more than quadrupled to 957 billion won (737.7 million dollars).

Equity financing, including the initial public offering and the rights issuance, stood at 238.1 billion won (183.5 million dollars) in February, down 84.0 percent from the prior month.

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