Industrial Bank to Purchase Corporate Bonds and CP Worth 552 Billion KRW via SPV Starting from the 24th

[Asia Economy Reporter Kangwook Cho] The Special Purpose Vehicle (SPV) established to purchase low-credit rating corporate bonds and commercial papers (CP) will officially begin operations on the 24th, starting with purchases worth 552 billion KRW.

According to the 4th Emergency Economic Central Countermeasures Headquarters' "Plan to Establish a Purchase Facility (SPV) for Corporate Bonds and CP Including Low Credit Ratings," the SPV, which officially launched on the 14th, is scheduled to start purchasing corporate bonds and CPs in earnest from the 24th, the Korea Development Bank (KDB) announced on the 23rd.

The SPV plans to purchase corporate bonds and CPs worth 552 billion KRW from 15 companies on the 24th, including 232 billion KRW of corporate bonds pre-purchased by KDB to minimize policy gaps before the SPV launch and a new support amount of 320 billion KRW.

Earlier, KDB and related organizations completed the formation of an Investment Management Committee to provide practical advice on the operation of the SPV.

The Investment Management Committee consists of five members, including Chairman Professor Beomsik Jang of Soongsil University, Senior Research Fellow Sungwook Park of the Korea Institute of Finance, Senior Research Fellow Inseok Baek of the Korea Capital Market Institute, Professor Jung Kyung Ha of Hanyang University, and KDB's Capital Market Division Head Kiho Yang.

At the first meeting on the 20th, the SPV investment guidelines were established. At the second meeting on the 22nd, consultations on the corporate bonds and CPs selected as the first purchase targets were completed.

A KDB official stated, "Going forward, to support companies in overcoming the COVID-19 pandemic through capital market stabilization, we plan to actively purchase low-credit rating corporate bonds and CPs through the SPV."

This content was produced with the assistance of AI translation services.