Regulator permits 40 firms to raise debt in overseas markets

The nation's top economic regulator allowed 40 companies to raise debt from overseas markets in July as part of its efforts to stabilize foreign debt issuance and avoid introduction of steps that would curb the fundraising needs of property developers.

"The government does have a set of standards for debt issues by property developers and local government lending facilities, but the standards, in terms of companies' credit rating and asset qualities, have not been set significantly higher than that in the domestic bond market," sources familiar with the matter said.

In July, 40 companies received government approval, almost twice the number compared to the same period last year, including real estate developers that have been regarded as risky sectors.