South Korea Posts Decrease in July Corporate Bond Sales
(MENAFN) South Korea’s corporate bond issuance edged down slightly in July, reflecting reduced funding needs from industrial firms, according to data released Tuesday by the Financial Supervisory Service.
The total corporate bond sales fell 0.5 percent month-on-month to 23.43 trillion won ($16.9 billion) in July. Bonds issued by industrial companies dropped sharply by 13.1 percent to 2.98 trillion won ($2.2 billion).
Conversely, bonds issued by financial firms rose 11.5 percent, reaching 19.36 trillion won ($13.9 billion). However, issuance of asset-backed securities plunged 60.4 percent, settling at 1.09 trillion won ($786.3 million).
The nation’s central bank has lowered its benchmark interest rate by 25 basis points twice this year, in February and May, bringing it down to 2.50 percent. These moves followed similar cuts in October and November of last year.
Meanwhile, equity financing surged dramatically in July, with initial public offerings and rights issuances totaling 4.81 trillion won ($3.5 billion), a sharp rise from 392.3 billion won ($283 million) recorded in June.
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