New Bond Issued: 520 Billion KRW P-CBO to Support Companies Affected by COVID-19

[Asia Economy Reporter Jin-ho Kim] The Korea Credit Guarantee Fund announced on the 24th that it will issue P-CBOs worth 520 billion KRW to support smooth funding for companies affected by COVID-19.

A total of 265 small and medium-sized enterprises (SMEs) and mid-sized companies will participate in this issuance, receiving 410 billion KRW in new funds and 110 billion KRW in refinancing funds. The Credit Guarantee Fund plans to supply a total of 5.1 trillion KRW through P-CBO issuances this year.

Additionally, to strengthen support for SMEs and lead early recovery of competitiveness, preferential measures for SMEs affected by COVID-19 were newly established earlier this month.

The per-company inclusion limit for SMEs was raised by 5 billion KRW from 20 billion KRW to 25 billion KRW. The per-affiliate inclusion limit was also expanded by 50 billion KRW from the existing 80 billion KRW to 130 billion KRW.

The Credit Guarantee Fund’s P-CBO guarantee is a guarantee system that supports companies in raising long-term funds directly in the financial market by issuing securitized securities based on corporate bonds issued by individual companies.

SMEs wishing to apply can consult at nationwide branches, while large and mid-sized companies can inquire at the Securitization Guarantee Center.

A Credit Guarantee Fund official said, “We will continue to actively support companies affected by COVID-19 with crisis management funds through multifaceted institutional improvements.”