Support for COVID-19 Affected Companies... Shinbo Issues P-CBO Worth 608 Billion Won

Issuance Expected to Reach a Total Scale of 50 Trillion This Year

[Asia Economy Reporter Minwoo Lee] The Korea Credit Guarantee Fund announced on the 26th that it will issue P-CBOs (Asset-Backed Securities) worth 608 billion KRW to help companies affected by COVID-19 secure funding smoothly.

The entire amount will be newly issued and will focus on supporting companies facing difficulties in raising funds due to the impact of COVID-19 and rising interest rates. In the second half of this year, a total of 2 trillion KRW will be supported, including 1.5 trillion KRW in new funds. Considering the 3 trillion KRW issued in the first half, the total issuance of P-CBOs this year is expected to reach 5 trillion KRW.

P-CBOs are securitized bonds (ABS) backed by newly issued bonds as underlying assets. The Korea Credit Guarantee Fund guarantees the companies' bonds and issues ABS. This helps companies raise funds directly in the financial market.

Applications for issuance in September are currently being accepted. Small and medium-sized enterprises in need of funds can apply at nearby branches, while large and medium-sized enterprises can apply through the Securitization Guarantee Center.

Meanwhile, the Korea Credit Guarantee Fund plans to continue expanding the beneficiaries of preferential interest rates, such as "ESG Management Evaluation Excellent Manufacturing Companies," in the second half of the year and take the lead in alleviating the burden of financing costs for companies due to rising interest rates. In the first half of the year, a total of 85 companies benefited from interest rate reductions under this policy.

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