South Korean bond issuance soared 73.5% to $17.5b in July

This is due to higher sales of low-grade bond issues through private placement.

South Korean companies floated bonds worth $17.5b (KRW20.8t) in July, up 73.5% from the previous month, reports Yonhap News Agency, citing data from the Korea Financial Investment Association.

Overall, bond sales in South Korea totaled $29.67b (KRW85.2t) in July, up $1.6b (KRW1.9t) from the prior month.

Bond issuance skyrocketed due to higher sales of low-grade bond issues through private placement, the association said.

Sales of privately placed corporate bonds stood at $12.38b (KRW14.7t) in July, up $9.77b (KRW11.6t) from June.

On the other hand, issues of gilt-edged bonds with a credit rating of AA and higher sank 27.2% on-month to $2.61b (KRW3.1t) over the same period.