Jungjingong Supports 280 Billion Won Corporate Bond Issuance This Year Through 'Scale-Up Finance'
Recruitment of Participating Companies
Up to 5 Years and 12 Billion KRW per Company
The Small and Medium Business Corporation announced on the 29th that it is recruiting participants for the '2024 2nd Scale-up Finance Project.'
The Scale-up Finance Project supports small and medium-sized enterprises (SMEs) with growth potential but difficulty issuing corporate bonds on their own credit to directly raise funds. In particular, by combining private capital and government finances, it supplies large-scale funds compared to general policy funds to induce the scale-up of SMEs such as mid-sized companies, global, and super-gap companies.
This year, the Small and Medium Business Corporation will support the issuance of corporate bonds worth approximately 280 billion KRW by enabling companies to raise funds up to 12 billion KRW per company for a maximum of 5 years. As in last year, bonds will be issued through a 5-year maturity asset securitization method (P-CBO) for SMEs, with a focus on supporting excellent SMEs in super-gap and new industry sectors, concentrating on fostering national core strategic industries and expanding new growth engines for SMEs.
Eligible applicants are SMEs under the Framework Act on Small and Medium Enterprises with a corporate bond credit rating of B+ or higher from credit rating agencies. The support scale per company and the issuance interest rate will be applied differentially according to the credit rating.
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Kang Seok-jin, Director of the Small and Medium Business Corporation, stated, “Scale-up Finance will induce participation from private investors, making it a project with a higher fiscal multiplier effect compared to other government finance-centered projects.” He added, “We will continue to take the lead in public-private collaborative liquidity support to contribute to securing the innovation growth engine of small and medium ventures.”
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