Stock issues by Korean Inc. off 80% and corporate bonds 57% amid soured sentiment

Stock issues by Korean companies plunged nearly 80 percent and bonds almost 60 percent in May versus the previous month to underscore the worsening financing conditions for Korean Inc.

According to data released by the Financial Supervisory Service on Friday, stock issues fell 78.7 percent on month to 742.3 billion won in May from April when Samsung Biologics issued 3.2 trillion won ($2.4 billion) worth rights offering to finance the acquisition of the stake for full ownership in Samsung Bioepis.

Initial public offerings (IPOs) jumped 53.5 percent on month to 98.4 billion won mostly in small scale to debut on the Kosdaq.

Five companies made secondary and rights offering of 2.78 trillion won, plunging 81.2 percent from a month earlier.

Debt issues in May amounted to 18.67 trillion won, up 12.4 percent from a month ago. But issues of corporate bonds plummeted 57.1 percent to 2.14 trillion won from the previous month amid soured market.

Issues of mid-to-long dated papers fell 25.2 percent on month leading to debt issues for refinancing to drop by 45.5 percent, operation 63.3 percent, and facilities 74.6 percent.

Bonds rated AA or higher made up 76.1 percent of total issues and mostly in mid- to long-term maturity.

Financial institutions sold 15.55 trillion won worth of debs, up 54 percent on month to finance increased corporate loan demand, while asset-based securities tumbled 35.7 percent on month to 978.3 billion won.

Outstanding balance of corporate bonds came to 633.989 trillion won at the end of May, up 0.4 percent from the previous month.

The combined issues of stocks and bonds amounted to 19.4 trillion won, down 3.5 percent from a month ago.

Commercial paper issues were up 5.4 percent on month and 14.8 on year to 38.396 trillion won and short-term debentures by 13 percent on month and 6.8 percent on year to 113.98 trillion won.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]