(MENAFN) Corporate bond sales in South Korea grew last month as companies hurried to sell debts amid lower rates following the delayed tapering of the U.S. Federal Reserve's monthly bond purchases, Xinhuanet reported.
Combined debt financing, including sales of corporate bonds, bank debentures and asset-backed securities (ABS), increased 23.4 percent from a month earlier to USD10 billion in September.
The growth came as the Fed announced last month to maintain its monthly bond purchases worth USD85 billion, leading to lower borrowing costs and consequent rush for issuing bonds by local firms.
Corporate bond sales, or those issued by industrial companies, recorded 89.4 percent on-month to USD1.46 trillion in September, the highest in five months. Bond issuance by financial companies reduced 11.6 percent last month, but bank debenture sales jumped 40.2 percent.
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