Korean firms' direct financing up 22.8 pct in Aug.

SEOUL, Sept. 29 (Yonhap) -- South Korean companies' direct financing increased 22.8 percent in August from a month earlier due mainly to a rise in corporate bond issuances, the financial watchdog said Thursday.
Local firms raised 10.4 trillion won (US$8.9 billion) by issuing stocks and bonds last month, compared with 8.5 trillion won the previous month, according to the Financial Supervisory Service (FSS).
In the January-August period, local companies' direct financing rose 12.7 percent on-year to 92.5 trillion won, it added.
In August, corporate share issuances stood at 108.2 billion won, down 70.8 percent from July, as companies delayed initial public offerings amid ongoing financial turmoil, the FSS said.
A total of nine companies held initial public offerings in July, but that number dropped to only two in August, according to the watchdog.
Meanwhile, corporate bond sales increased 27.1 percent on-month to 10.3 trillion won in August. Of the corporate bonds issued last month, those by large corporations accounted for 99.9 percent, with less than 1 percent sold by small and medium enterprises, the FSS said.
The issuance of asset-backed securities jumped nearly five-fold to 1 trillion won, it added. Asset-backed securities are bonds or notes backed by assets consisting of debt obligations such as car loans, home equity loans, credit card receivables and student loans.
mil@yna.co.kr
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