Shinbo Issues 570 Billion KRW P-CBO to Support Companies Affected by COVID-19

[Asia Economy Reporter Kwangho Lee] The Korea Credit Guarantee Fund announced on the 29th that it will issue Primary Collateralized Bond Obligations (P-CBO) worth 570 billion KRW this month to support smooth financing for companies affected by COVID-19.

Through this issuance, it will provide new funds worth 450 billion KRW and refinancing funds worth 120 billion KRW to a total of 296 small and medium-sized enterprises (SMEs) and mid-sized companies.

The KODIT's P-CBO guarantee is a guarantee system that supports companies in raising long-term funds in the direct financial market by issuing securitized securities based on corporate bonds issued by individual companies as underlying assets. For large and mid-sized companies, the target is companies with corporate bond ratings of BB- or higher, and for SMEs, companies with an internal evaluation rating of K9 (K10 for companies with CPA audit reports) or higher.

To provide smooth support for companies affected by COVID-19, unlike previous years, issuance started from January this year, and up to this month, a total of 4 trillion KRW has been provided to 565 SMEs and 141 large and mid-sized companies, achieving more than 97% of this year's new supply plan, thereby smoothly continuing the policy goals.

A KODIT official said, "Amid expanding uncertainties in the corporate bond market due to recent interest rate hikes, inquiries about P-CBO guarantees from companies preparing for future economic changes are steadily continuing," adding, "We plan to actively reflect the funding needs of companies and support COVID-19 affected companies to quickly overcome management crises."

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