Corporate direct financing shoots up in September
SEOUL, Oct. 21 (Yonhap) -- Direct financing by South Korean companies jumped in September due to a rise in initial public offerings (IPOs) and corporate bond sales, the financial watchdog said Tuesday.
Local companies raised a combined 11.19 trillion won (US$10.7 billion) from stock and bond sales last month, compared with 7.29 trillion won the previous month, according to the Financial Supervisory Service (FSS).
For the first nine months, corporate financing reached 88.87 trillion won, up 3.1 percent from a year ago, it said.
Stock offerings rose 5.2 percent on-year to 599 billion won last month, as the value of IPOs hit a yearly high of 172 billion won.
Corporate debt issuance totaled 10.59 trillion won last month, up 57.5 percent from 6.72 trillion a month earlier on the back of low market rates, the watchdog said.
The Bank of Korea, the country's central bank, trimmed its policy rate by a quarter percentage point to 2.25 percent in August to help Asia's fourth-largest economy grow. This month, the central bank cut the base rate by another quarter percentage point to a record low of 2 percent.
Financial firms, mostly banks, led the overall rise in debt sales in September, with debentures sold by banks reaching this year's high at 2.54 trillion won, the financial watchdog said.
sam@yna.co.kr
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