Korea Development Bank Begins Pre-Purchase of Low Credit Rating Corporate Bonds and CP

Pre-purchase Before Establishing Corporate Bond and CP Purchase Vehicle (SPV)
Building a Support Network for the Corporate Bond Market Including Low Credit Ratings

[Asia Economy Reporter Jo Gang-wook] KDB Industrial Bank announced on the 11th that it will start the 'pre-purchase process for low credit rating corporate bonds and CP' ahead of the establishment of the Special Purpose Vehicle (SPV) for purchasing corporate bonds and CP including low credit ratings, to realize the purpose of the government's plan.

This measure is intended to minimize policy gaps considering the National Assembly schedule and establishment procedures for the passage of the SPV-related budget bill (3rd supplementary budget).

To this end, KDB Industrial Bank approved internal procedures for purchasing low credit rating corporate bonds and CP on the 5th and began pre-purchases from the 10th.

A KDB Industrial Bank official said, "With the start of this pre-purchase, a support network covering the entire corporate bond market including low credit ratings will be established and operated."

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