Shinbo Supplies 900 Billion Won in Funds as October P-CBO

New Funding of 710 Billion KRW to Support Industries Severely Affected by COVID-19 and Key Sectors

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund announced on the 29th that it has provided long-term funds worth 900 billion won through the P-CBO (Pooled Collateralized Bond Obligation) guarantee to companies affected by the novel coronavirus infection (COVID-19) and key industries.

Contrary to expectations that the securitization support scale would slightly decrease compared to the 920 billion won provided in September, a large-scale supply of P-CBO guarantees was made in October as well, in line with companies' demand for new and refinancing funds.

In particular, 510 billion won was prioritized for industries directly affected by COVID-19, such as large-scale retail, movie theaters, and dining businesses, and 200 billion won of new funds were supplied to key industries and the materials, parts, and equipment sectors, including automobiles, electronic components, and industrial machinery, to strengthen industrial competitiveness.

Through this issuance, new funds of 710 billion won were provided to 4 large corporations, 24 mid-sized companies, and 41 small and medium enterprises, with procurement costs including subordinated acquisition applied from a minimum annual rate of 2.3%. The Korea Credit Guarantee Fund's P-CBO guarantee system supports companies in raising long-term funds directly from the financial market by issuing securitized bonds based on corporate bonds issued by individual companies, targeting corporate bonds rated BB- or higher for large and mid-sized companies.

Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund, said, “We will continue to play a strong supporting role to ensure that our economy does not fall into recession by providing stable long-term funds, focusing on companies struggling with liquidity shortages due to COVID-19 and other factors.”

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