Shinbo Supplies 360 Billion KRW in August through 'Corona P-CBO'

Priority Support of Over 200 Billion KRW in New Funds for Movie Theaters, Automobiles, and Distribution
Applications for September Issuance Due by August 21, for October Issuance by September 18

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund (KODIT) announced on the 21st that it has provided new funds amounting to 360 billion KRW this month through the securitization company guarantee (P-CBO) to companies affected by the novel coronavirus disease (COVID-19) and key industries.

KODIT had not issued P-CBOs during July and August, when corporate funding demand was low. However, this year, due to the urgent funding needs caused by the spread of COVID-19, it supported new funds through P-CBO issuance this month as well as last month.

The recipients of the support include COVID-19 affected companies, comprising one large enterprise and eleven mid-sized companies. Liquidity was also supplied to one specialized credit company that actively participated in principal and interest repayment deferrals for small business owners. The new funds were provided with a fixed interest rate and a maturity of three years.

KODIT’s P-CBO is a system that issues securitized bonds based on corporate bonds issued by individual companies, enabling companies to raise long-term funds directly from the financial market. It targets corporate bonds rated BB- or higher. There is a plan to provide an additional approximately 5 trillion KRW in new funds through P-CBOs by the end of the year.

Applications from companies wishing to issue securitized bonds next month are accepted until today. Applications for the October issuance will be accepted until September 18. A KODIT official stated, “We will continue to play a strong supporting role by providing stable long-term funds to companies struggling with liquidity shortages so that they can overcome the COVID-19 crisis.”

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