South Korean companies have issued a record volume of dollar bonds so far this year as they secure funding for overseas expansion plans, and investors seek alternatives amid the dearth of Chinese bond issuance, reported Scott Murdoch for Reuters.
Bankers stated that expectations of higher interest rates prompted some Korean corporations to delay deals in 2023.
According to LSEG data, more than $15 billion worth of bonds have been issued since Jan. 1, marking a 30% increase from the same period last year.
Bankers note that January is typically a busy month for bonds in Korea. Still, the surge in deals has exceeded expectations as companies capitalize on the current positive sentiment among investors toward Korea.
Bankers stated that expectations of higher interest rates prompted some Korean corporations to delay deals in 2023, but upcoming funding needs have led to the revival of these transactions this year.
Offshore bond deals from China have declined sharply as its real estate sector, a major issuer of dollar bonds remains in crisis, and the nation's economy continues to recover from the pandemic.
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