Support for COVID-19 Affected Companies... Shinbo Issues P-CBO Worth 670 Billion Won

Interest Rate Reduction Benefits for Growth-Promising Companies

[Asia Economy Reporter Minwoo Lee] To help companies affected by COVID-19 smoothly raise funds, the Korea Credit Guarantee Fund (KODIT) will issue asset-backed securities (P-CBO) worth 673.4 billion KRW.

KODIT announced on the 29th that by issuing such P-CBOs, it will provide funds to a total of 328 companies, including 4 large corporations, 16 mid-sized companies, and 308 small and medium-sized enterprises (SMEs).

P-CBOs are asset-backed securities (ABS) based on newly issued bonds as underlying assets. KODIT guarantees the companies' bonds and issues ABS. Through this, it helps companies raise funds directly from the financial market.

Of the total support amount of 673.4 billion KRW, 569.7 billion KRW will be supplied through new issuance. The remaining 103.7 billion KRW will be funds for refinancing existing corporate bonds.

First, 246.2 billion KRW, the highest level this year, will be newly provided to SMEs facing complex crises such as high interest rates and high exchange rates. To alleviate the burden of financing costs, growth-potential companies such as 'Innovative Companies National Representative 1000', mid-sized prospective companies, and companies with excellent ESG (Environmental, Social, and Governance) management capabilities will be offered interest rate reduction benefits.

Applications for issuance in October are currently being accepted. SMEs in need of funds can apply at nearby branches, while large and mid-sized companies can apply through the Securitization Guarantee Center. KODIT plans to reflect companies' funding demands as much as possible in the upcoming fourth quarter and support them to ensure no difficulties in raising funds.

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