Bond offerings by Korean Inc. could exceed 40 trillion won ($35 billion) in the first half, including 9 trillion won this month alone, as companies rush to raise debt for refinancing before rates turn higher in the second half.

Samsung Securities in latest report projected 9 trillion won in new corporate offerings this month – 6.1 trillion won for refinancing maturing debt. As of Friday, 2.38 trillion won worth had been sold this month, leaving about 7 trillion won in the pipeline.

“Companies are rushing with issuance as they project interest rates to go higher. Moreover funds have begun to return to the bond market lately,” said Kim Eun-ki, senior researcher at Samsung Securities.

When counting in 21.5 trillion won issuance in the first quarter, offering in the first half could hit over 37 trillion won or even 40 trillion won if issuers advance issuance to repay the 19.2 trillion maturing in the second half.

By Ahn Gab-seong and Lee Soo-min

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]