SEOUL, Aug. 26 (Yonhap) — South Korean companies’ stock and bond sales rose 1.4 percent in July from a month earlier, due mainly to a sharp increase in rights issues, data showed Wednesday.

Local companies raised a combined 19.7 trillion won (US$16.6 billion) by selling stocks and bonds in July, up 264.9 trillion won from June, according to the data from the Financial Supervisory Service (FSS).

The hike is mainly attributable to the 359.6 percent on-month hike in rights issues to 1.82 trillion won, the FSS said.

Last month, 12 companies raised a combined 242.3 billion won through initial public offerings, down from 779.8 billion won by nine companies a month earlier, the FSS said.

Local businesses raised 17.7 trillion won by selling bonds in July, down 3.4 percent from a month earlier, the FSS said.

The outstanding value of bonds issued by South Korean businesses came to 552.6 trillion won as of the end of July, up 1.2 percent from a month earlier.