Korea Credit Guarantee Fund Issues P-CBO Worth 5.1 Trillion Won
[Asia Economy Reporter Eunju Lee] The Korea Credit Guarantee Fund announced that it issued 5.1 trillion KRW worth of P-CBOs this year to support companies affected by COVID-19 and others.
The Fund exceeded its initial plan of 5 trillion KRW by 100 billion KRW, providing necessary funds to companies facing difficulties in raising capital due to instability in the bond market. Of the total support amount of 5.1 trillion KRW, 4.1 trillion KRW was new funds, and 1 trillion KRW was for refinancing existing corporate bonds.
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It explained that liquidity support was provided to 1,780 companies (14 large enterprises, 147 mid-sized companies, and 1,619 small and medium enterprises), contributing to the stabilization of the bond market. A representative from the Fund stated, "Through various institutional improvements such as the first overseas issuance to enhance marketability and the expansion of preferential interest rate targets, we actively responded to fluctuations in the domestic bond market and took the lead in alleviating financial cost burdens." Furthermore, “We plan to explore various institutional improvement measures to reflect corporate funding demands as much as possible and actively cooperate with the government's financial market measures for the prompt stabilization of the bond market.”
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