Chaean Fund's First Confirmed Purchase of Corporate Bonds... Issuance on the 14th

[Asia Economy Reporter Kim Hyo-jin] The purchase of specialized credit finance company bonds (여전채) by the Bond Market Stabilization Fund (채안펀드), established to alleviate corporate liquidity shortages caused by the novel coronavirus infection (COVID-19), has been confirmed for the first time.

On the 10th, the Financial Services Commission announced through a press release that the purchase of A company's specialized credit finance company bonds, for which issuance terms have been finalized, by the Bond Market Stabilization Fund has been decided. The bonds to be purchased will be issued on the 14th.

On the 8th, the Financial Services Commission held a meeting with the Korea Federation of Specialized Credit Finance Companies and specialized credit finance companies to discuss the operation direction of the Bond Market Stabilization Fund.

The Financial Services Commission explained that at the meeting, it reaffirmed the basic principle of the fund's operation, which prioritizes supplementing market supply and demand, and that financial companies should first make efforts to raise funds in the market.

Going forward, the Financial Services Commission plans to determine the specific purchase targets, scale, and conditions through the Bond Market Stabilization Fund, considering the support scale for principal and interest repayment deferral for small and medium-sized enterprises and small business owners by specialized credit finance companies, as well as issuance conditions of specialized credit finance company bonds in the market.

The Financial Services Commission intends to maintain an incentive system that allows market issuance to be prioritized by deciding the purchase conditions of the Bond Market Stabilization Fund based on market issuance conditions.

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