South Korea’s corporate bond sale logs double- digit fall in April

29 May, 2020 12:00 AM printer

SEOUL: South Korea's corporate bond sale logged a double-digit fall in April owing to a reduced issuance of asset-backed securities (ABS) and financial bonds, financial watchdog data showed Thursday.

The issuance of corporate bonds amounted to 11.4 trillion won (9.2 billion U.S. dollars) in April, down 27.0 percent from a month earlier, according to the Financial Supervisory Service, reports Xinhua.

The ABS issuance retreated 23.3 percent last month, and the sale of bonds, issued by financial companies, tumbled 48.0 percent as banks refrained from lending money.

Bond, issued by industrial companies, jumped 60.2 percent to 1.6 trillion won (1.3 billion U.S. dollars) as companies rushed to secure liquidity amid rising economic uncertainty caused by the COVID-19 outbreak.

The equity financing, which includes initial public offering (IPO) and rights issuance, stood at 48.6 billion won (39.4 million U.S. dollars) in April, down 896 percent from the previous month.