Shin Yong Bo Jeung Gi Geum Issues P-CBO... Supporting Total 3 Trillion Won in Corporate Funds in H1

Maximizing Support Effects through Increased Issuance Volume and System Improvements
Closing First Half Support with 450 Billion KRW Issuance at End of June

[Asia Economy Reporter Sim Nayoung] The Korea Credit Guarantee Fund (Chairman Yoon Daehee) announced on the 28th that it has issued a total of 3 trillion won in primary collateralized bond obligations (P-CBO) for companies affected by COVID-19 in the first half of this year, including 450 billion won this month.

This issuance exceeded the initial plan by approximately 300 billion won. The Credit Guarantee Fund actively worked to provide liquidity support to companies facing difficulties in fundraising due to the impact of COVID-19 and rising interest rates.

Of the total support amount of 3 trillion won, 2.4 trillion won was new funds, and 600 billion won was refinancing funds for existing corporate bonds. The supported companies included 8 large enterprises, 103 mid-sized companies, and 905 small and medium-sized enterprises, with a particular focus on supporting small and mid-sized companies.

In addition to quantitative expansion, the Credit Guarantee Fund took the lead in alleviating companies' financing cost burdens by promoting various institutional improvements, such as diversifying investors through its first overseas issuance and expanding interest rate benefits to include companies with excellent ESG management evaluations.

The Credit Guarantee Fund’s P-CBO guarantee is a system that supports companies in raising funds directly from the financial market by issuing securitized bonds based on corporate bonds issued by individual companies. It has the advantage of enabling companies to secure long-term funds at fixed interest rates.

A representative from the Credit Guarantee Fund stated, “As difficulties are expected to continue in the second half of the year due to the prolonged Ukraine crisis and rapidly changing market conditions, we will do our best to provide timely liquidity support to stabilize corporate management.”

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