Kibo Issues 292.2 Billion KRW P-CBO This Year... Leading the Way to Overcome Complex Economic Crisis

Contributing to Stable Corporate Growth and Job Creation
Issued Entirely as ESG Bonds

The Korea Technology Finance Corporation (Chairman Kim Jong-ho, hereinafter Kibo) announced on the 8th that it issued a total of 292.2 billion KRW worth of P-CBOs in two rounds during the first and second half of this year to enable small and medium-sized venture enterprises to raise funds through direct financing.

P-CBOs are securitized bonds issued based on corporate bonds of small and medium-sized venture enterprises. Through Kibo’s guarantee, they are upgraded to top-tier ratings (AAA) and sold in the capital market, allowing companies to procure necessary funds at low interest rates.

This year, Kibo supported a total of 292.2 billion KRW to 229 companies, including 204.7 billion KRW in new funds and 87.5 billion KRW for refinancing existing corporate bonds. Based on new support, the funding per company ranged from a minimum of 300 million KRW to a maximum of 7 billion KRW, with an average of 1.6 billion KRW.

In particular, more than 75% of the total new issuance amount was allocated to companies in future strategy industries with overwhelming competitiveness and venture and Inno-Biz companies. This reflects a policy focus on securing future technology and industrial leadership and technological innovation.

Additionally, since introducing securitization company guarantees in 2011, Kibo newly established a P-CBO support system for venture capital companies for the first time, which is expected to create indirect support effects for small and medium-sized venture enterprises, such as revitalizing fund formation and expanding venture investment.

The P-CBOs issued by Kibo have been highly evaluated for contributing to the stable growth of companies and job creation through financial support for small and medium-sized venture enterprises, earning the highest rating of 'Social 1' certification for Social Bonds. They will be publicly issued entirely as ESG bonds and listed on the Korea Exchange.

Next year, Kibo plans to expand the scale of P-CBO issuance to support smooth fundraising for companies and focus on overcoming the complex economic crisis. Chairman Kim Jong-ho said, "P-CBO is a system that supports small and medium-sized venture enterprises, which find it difficult to issue corporate bonds, to stably raise long-term funds in the direct financial market," adding, "Kibo will continue to expand P-CBO issuance to diversify funding sources and support long-term liquidity for small and medium-sized venture enterprises."

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