ID :
185220
Mon, 05/30/2011 - 07:12
Auther :
Shortlink :
https://oananews.org//node/185220
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S. Korean firms' direct financing jumps 62 pct in April
SEOUL, May 30 (Yonhap) -- South Korean firms' direct financing surged 62 percent in April from a month earlier as companies rushed to raise funds amid the central bank's expected interest rate hikes, the financial regulator said Monday.
Local banks and non-banking firms raised a total of 14.66 trillion won (US$13.6 billion) through selling stocks and bonds last month, compared with 9.05 trillion won in March, the Financial Supervisory Service (FSS) said in a statement.
Equity financing, including initial public offerings and new share issuance, more than quadrupled to 1.52 trillion won in April from March's 349.7 billion won, according to the FSS.
Sales of bonds jumped 51.1 percent on-month to 13.14 trillion won, it said.
The sharp growth in direct financing last month came mainly because companies and bank holding firms scrambled to raise funds on forecasts that the Bank of Korea (BOK) is likely to hike its key interest rate in coming months, the regulator said.
During April, Shinhan Financial Group Co., the nation's third-largest bank holding firm, raised 1.1 trillion won through issuing new shares while Hana Financial Group Inc. secured 2.7 trillion won by selling stocks and bonds, the FSS added.
During the January-April period, accumulated direct financing reached 48.59 trillion won, up 22.7 percent from the same period last year, the FSS said.
The central bank froze its benchmark interest rate at 3 percent for May after holding it unchanged in the previous month, beating wide expectations over a rate increase.
pbr@yna.co.kr
(END)
Local banks and non-banking firms raised a total of 14.66 trillion won (US$13.6 billion) through selling stocks and bonds last month, compared with 9.05 trillion won in March, the Financial Supervisory Service (FSS) said in a statement.
Equity financing, including initial public offerings and new share issuance, more than quadrupled to 1.52 trillion won in April from March's 349.7 billion won, according to the FSS.
Sales of bonds jumped 51.1 percent on-month to 13.14 trillion won, it said.
The sharp growth in direct financing last month came mainly because companies and bank holding firms scrambled to raise funds on forecasts that the Bank of Korea (BOK) is likely to hike its key interest rate in coming months, the regulator said.
During April, Shinhan Financial Group Co., the nation's third-largest bank holding firm, raised 1.1 trillion won through issuing new shares while Hana Financial Group Inc. secured 2.7 trillion won by selling stocks and bonds, the FSS added.
During the January-April period, accumulated direct financing reached 48.59 trillion won, up 22.7 percent from the same period last year, the FSS said.
The central bank froze its benchmark interest rate at 3 percent for May after holding it unchanged in the previous month, beating wide expectations over a rate increase.
pbr@yna.co.kr
(END)
