Corporate direct financing dips in May on fall in debt sales

SEOUL, June 30 (Yonhap) -- Corporate direct financing in South Korea dropped sharply in May as companies curtailed debt sales, offsetting a sharp rise in stock offerings, data showed Monday. Local companies raised a combined 21.32 trillion won (US$15.73 billion) last month by selling stocks and bonds, down 9.48 trillion won, or 30.8 percent, from the previous month, according to the data from the Financial Supervisory Service. Stock sales spiked to 1.82 trillion won last month from the previous month's 373 billion won, while share sales via initial public offerings rose 53.4 percent on-month to 139 billion won last month. Corporate bond sales, however, sank 36 percent, or 10.92 trillion won, on-month to 19.5 trillion won. The value of outstanding corporate bonds stood at 714.45 trillion won as of end-May, up 755 billion won, or 0.1 percent from a month earlier, the data showed. sam@yna.co.kr(END)

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SEOUL, June 30 (Yonhap) — Corporate direct financing in South Korea dropped sharply in May as companies curtailed debt sales, offsetting a sharp rise in stock offerings, data showed Monday.

Local companies raised a combined 21.32 trillion won (US$15.73 billion) last month by selling stocks and bonds, down 9.48 trillion won, or 30.8 percent, from the previous month, according to the data from the Financial Supervisory Service.

Stock sales spiked to 1.82 trillion won last month from the previous month’s 373 billion won, while share sales via initial public offerings rose 53.4 percent on-month to 139 billion won last month.

Corporate bond sales, however, sank 36 percent, or 10.92 trillion won, on-month to 19.5 trillion won.

The value of outstanding corporate bonds stood at 714.45 trillion won as of end-May, up 755 billion won, or 0.1 percent from a month earlier, the data showed.