New Bond, First Issuance of 285 Billion KRW P-CBO in February

For Bond Market Stability... Advanced by One Month Compared to Previous Years

On the 27th, the Korea Credit Guarantee Fund announced that it will issue Primary Collateralized Bond Obligations (P-CBO) worth 285 billion KRW on the 28th. The Fund's P-CBO guarantee is a system that supports companies in raising funds directly in the financial market by issuing securitized bonds based on corporate bonds issued by individual companies as underlying assets.

Typically, the Fund issues P-CBOs first in March every year, but this year, due to the bond market instability that began in the second half of last year, the issuance timing was moved up by one month to quickly support companies temporarily facing difficulties in raising funds.

In particular, this issuance will be supported entirely with new funds, and more than 50% of the issuance amount will be concentrated on companies in the construction industry and specialized credit finance companies that require policy support. The Fund plans to continue issuing after March as well.

A Fund official stated, “Although the bond market has recently shown signs of stabilization, such as a slight slowdown in the rise of interest rates, some companies, including those in the construction industry, are still struggling to raise funds. We will do our utmost to operate according to the annual issuance plan to stabilize the bond market and provide prompt financial support to companies.”

[Image source=Yonhap News]

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