- Rationale
- Listing bonds means that the bonds are allowed to be traded on the exchange market.
- Financial Investment Services and Capital Markets Act, Article 390
- Article 390(Listing Regulations) ① An exchange shall prescribe Listing Regulations of Securities for reviewing the securities to be listed and for managing listed securities.
- Listing is not mandatory for bonds in Korean market, including the case of a public offer. It depends on the self-decision of an issuer.
- Listing bonds means that the bonds are allowed to be traded on the exchange market.
- Advantages of Listing Bonds
- Selected as investment instruments by institutional investors
Institutional investors such as pension funds, insurance companies, and asset management firms prefer listed bonds to unlisted those as investment instruments for their funds. Listing enables buyers bound by rules on unlisted securities to issuers. - Used as substitute securities and collateral assets
Listed bonds can be accepted by court as a deposit and/or used as the margin for trading of securities and derivatives. The value of a deposit is calculated as a substitution price of listed bonds, which is presented by KRX. - Improving public confidence in the issuer
Issuers benefit from greater visibility and enhanced brand recognition. Public confidence in the issuer can be improved by disclosing the issuer's business management and information on the issuance.
- Selected as investment instruments by institutional investors
- Listing Criteria
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Debt securities are listed in accordance with the KOSPI Market Listing Regulation. In case of receiving the application of listing, KRX carries out the listing eligibility review as follow.
주의Government bonds, municipal bonds, and specific laws bonds are listed when received listing application without listing examinationListing Criteria Classification Domestic Debt Securities Foreign Debt Securities Issuing corporation Corporation with capital stock at least KRW 500 million.
However, this requirement is not applied to guaranteed
/ secured corporate bonds, covered bonds, asset backed securities and non-standard ABS.- The equity capital is worth at least KRW 10 billion without capital impairment
- Qualification of issuing corporation
- A corporation that has listed its stocks on overseas exchanges
- A corporation that has listed its stocks or DRs on KRX markets
- A corporation that has issued securities through public offering or secondary distribution
However, the latter requirement is not applied to debt securities issued by international financial institutions or foreign governments, guaranteed / secured corporate bonds, covered bonds, asset backed securities and non-standard ABS.
Public offering or secondary distribution The bonds should have been issued through public offering or secondary distribution Total issued amount The total par value of the issued bonds should be more than KRW 300 million. However, in case of guaranteed / secured corporate bonds and covered bonds, it should be more than KRW 50 million. Total par value of unredeemed bonds The total par value of unredeemed bonds should be more than KRW 300 million. However, in case of guaranteed / secured corporate bonds and covered bonds, it should be more than KRW 50 million. Uniform bond certificates The bonds should be those pursuant to the Regulation on Securities Administration.
However, this requirement is not applied to registered bonds.- Registered bonds The bonds should be the registered bonds under the Bond Registration Act (Article 4) or the Commercial Law (Articel 478). In the case of convertible bonds, only registered bonds can be listed. Credit rating - The bonds should have received the investment grade (BBB or above) from credit rating agencies.
Etc. - - Consultation with KRX on the procedure and schedule of listing
- Appointing a listing agent
주의However, the listing criteria are applied to the specific laws bonds that require filing of securities registration statement