Shinbo Supports COVID-19 Affected Companies with 215 Billion KRW through P-CBO Issuance

Plan to Issue Total 5.2 Trillion KRW P-CBO Including 4.3 Trillion KRW New Funds This Year
Practicing Social Responsibility as a Public Institution Through ESG Bond Issuance

Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund (KODIT) announced on the 15th that it has provided new funds amounting to 215 billion KRW through securitization company guarantees (P-CBO guarantees) to companies affected by COVID-19.

Marking the second year since the introduction of the 'COVID-19 Response P-CBO Guarantee,' KODIT exceptionally pushed for issuance in January to fully support affected companies. This decision was made amid mixed concerns that corporate damages from COVID-19 would continue and expectations that economic recovery would occur with vaccine distribution, emphasizing the need to proactively support corporate liquidity.

KODIT plans to issue a total of 5.2 trillion KRW in P-CBOs this year, including 4.3 trillion KRW in new funds. Notably, the 'COVID-19 Response P-CBO' will expand its support scope from large and medium-sized enterprises to include small and medium-sized enterprises (SMEs), and will pursue monthly issuances based on corporate demand to provide swift liquidity support to companies affected by COVID-19. Additionally, KODIT will continuously monitor operational aspects such as companies' financing costs and support limits to promptly establish effective measures tailored to field conditions.

Meanwhile, since P-CBOs are bonds aimed at diversifying SMEs' financing methods and supporting liquidity crisis resolution for companies affected by COVID-19, KODIT has decided to issue them as ESG (Environmental, Social, and Governance) bonds starting this year. Through issuing ESG bonds, KODIT plans to participate in the government's social policies and expects to lower P-CBO issuance interest rates by expanding funding sources to include socially responsible investors, including private companies.

A KODIT official stated, "We will continue to make every effort to support companies affected by COVID-19 this year and serve as a strong pillar for our economy," adding, "We will also fulfill our social responsibility as a representative policy guarantee institution through ESG bond issuance."

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