Corporate financing through debt and equity issuance fell 22% to 21.8 trillion won in March from 28 trillion won in the previous month, the Financial Supervisory Service said Thursday.

The decline was led by a sharp 61% drop in corporate bond issuance to 4.2 trillion won in March from 10.7 trillion won in February. Equity financing edged up 5.8% to 469 billion won, with rights offerings jumping 26.3% while initial public offering proceeds declined 17.8% in the month amid Kosdaq listings.

On the other hand, commercial paper and short-term bond issuance rose 0.6% to 118.8 trillion won. ABS issuance more than doubled to 1.92 trillion won, with primary collateralized bond obligation volume soaring 184.4%. The total outstanding debt increased to 704.7 trillion at the end of March, the release said.