The corporate bond market is expected to remain busy after the Chuseok holiday. Usually, the fourth ..

The corporate bond market is expected to remain busy after the Chuseok holiday. Usually, the fourth quarter is classified as an off-season of issuance, but this year, companies’ financing continues amid expectations of a rate cut, and demand forecasting schedules are dense in October.

According to the investment bank (IB) industry on the 12th, 14 companies are about to issue public bonds within this month. More than 4 trillion won is expected to be issued depending on the results of the demand forecast.

Usually, after the holiday, institutional investors enter the book closing (the closing of accounting books), and the market becomes quiet, but the atmosphere has changed this year due to abundant liquidity and interest rate cuts. Analysts say that an increasing number of companies are making last-minute procurement ahead of the third quarter’s earnings announcement next month.

This month’s issuers also have a variety of industries. The financial sector as well as manufacturing companies such as SK Incheon Petrochemical, HS-effective advanced materials, and Korea Zinc are also waiting to issue capital securities.

Woori Financial Group and BNK Financial Group plan to issue up to 400 billion won and 150 billion won in new capital securities, respectively. Mirae Asset Life Insurance, Meritz Fire & Marine Insurance and Shinhan Bank are preparing to issue subordinated bonds.

Korea Zinc is the second public offering bond issue this year and aims to raise 350 billion won on a 3-year basis. Depending on the demand, it can increase up to 700 billion won. The purpose of repayment of loans and securing operating funds is large due to prolonged management disputes.

United Asset Management (Yuamco) will issue its third public offering bond this year. As the non-performing loan (NPL) market grows due to a long-term recession, it seems to be increasing its capacity to secure assets. SK IE Technology and SK Intelix (formerly SK Magic) are also scheduled to issue them one after another.