Kibo Issues 217.2 Billion KRW Securitization Company Guarantees in First Half of Year

More Than Double Compared to Last Year
Serving as a Market Safety Net

The Korea Technology Finance Corporation (Kibo) announced on the 20th that it issued a total of 217.2 billion KRW in Private-Company Bond Guarantees (P-CBO) to 97 companies in the first half of the year to help small and medium-sized venture enterprises (SMVEs) secure stable funding through direct financing.

The Private-Company Bond Guarantee (P-CBO) system strengthens the credit of new corporate bonds issued by promising SMVEs that find it difficult to issue bonds on their own credit by providing Kibo’s guarantee, and then sells these bonds in the capital market to assist companies in raising funds.

Kibo explained that to alleviate the financial difficulties of SMVEs amid the prolonged complex economic crisis, it expanded policy funds to 217.2 billion KRW, more than double compared to the previous year, thereby strengthening its role as a market safety net.

In particular, Kibo introduced Green Asset-Backed Securities (G-ABS) this year in collaboration with the Ministry of Environment and the Korea Environmental Industry & Technology Institute, issuing 40 billion KRW of the total issuance amount as G-ABS to support smooth financing for companies engaged in green economic activities. Through this support, 19 small and medium enterprises received an interest rate reduction benefit of 4.2 percentage points per annum, enabling them to secure green investment funds at a low interest rate in the 1% range.

Kim Jong-ho, Chairman of Kibo, stated, “In the complex economic crisis situation, Kibo will take the lead in helping SMVEs overcome liquidity crises and support economic recovery,” adding, “Kibo will strengthen cooperation with related organizations to enable companies to raise funds through various methods and will continue to expand direct financing support such as P-CBO.”

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