Shinbo Issues 770 Billion Won Securitization Company Guarantee for COVID-19 Affected Businesses

[Asia Economy Reporter Song Seung-seop] The Korea Credit Guarantee Fund announced on the 27th that it will issue asset-backed company guarantees (P-CBO) worth 770 billion KRW this month to support smooth financing for companies affected by COVID-19. This is the largest amount of new funding support so far this year.

A total of 112 companies participated in the issuance, including 18 large and medium-sized enterprises and 94 small and medium-sized enterprises, expanding the issuance scale beyond initial expectations. Amid ongoing uncertainties in the capital market, demand increased as companies sought to proactively secure funds in preparation for interest rate hikes. Additionally, it is analyzed that many companies wanted to secure surplus funds ahead of the Chuseok holiday.

The KODIT P-CBO guarantee is a guarantee system that supports companies in raising long-term funds directly in the financial market by issuing asset-backed securities based on corporate bonds issued by individual companies. Large and medium-sized enterprises must have a corporate bond rating of BB- or higher, and small and medium-sized enterprises must meet KODIT's internal evaluation rating of K9 (K10 for companies with CPA audit reports).

Applications for issuance in October are currently being accepted, with small and medium-sized enterprises able to consult at nationwide branches, and large and medium-sized enterprises able to consult at the Securitization Guarantee Center.

A KODIT official emphasized, "As the spread of COVID-19 continues, demand for P-CBO guarantees is expected to remain steady for the time being," adding, "We will continue to actively provide liquidity support to companies affected by COVID-19."

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