Shinbo Provides 620 Billion KRW Support to Companies Affected by COVID-19

Support Status by Company Size in the First Half of 2021. Photo by Korea Credit Guarantee Fund

[Asia Economy Reporter Song Seung-seop] On the 29th, the Korea Credit Guarantee Fund announced that it will issue P-CBOs worth 620 billion KRW to facilitate smooth funding for companies affected by COVID-19.

This issuance was prepared to support companies still overcoming the damage caused by COVID-19 despite growing economic recovery expectations due to the distribution of COVID-19 vaccines. By the end of this year, it plans to additionally issue P-CBOs totaling 2.2 trillion KRW, including 1.8 trillion KRW in new funds.

The Credit Guarantee Fund’s P-CBO guarantee is a system where securitized bonds are issued based on corporate bonds issued by individual companies as underlying assets, enabling companies to directly raise long-term funds in the financial market. The corporate bond issuance process is simple and there is no risk of unsold bonds, making it stable. In the first half of this year, P-CBOs worth a total of 2.09 trillion KRW were supported, including 2.4 trillion KRW in new funds and 500 billion KRW in refinancing funds.

Applications for issuance in August are currently being accepted. Small and medium-sized enterprises wishing to apply can consult at nationwide branches, while large and medium-sized enterprises can receive consultation at the Securitization Guarantee Center.

A representative from the Credit Guarantee Fund emphasized, “The P-CBO guarantee program is recognized as a stable funding method by many companies,” and added, “We will continue to promote issuance in the second half of the year according to companies’ funding needs.”

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