Kibo to issue 586.5 billion won in P-CBOs this year… "Providing funding support to 303 technology SMEs."

The Korea Technology Finance Corporation (Korea Technology Finance Corporation, Chairman Kim Jong-ho, hereinafter referred to as KIBO) announced on the 10th that it issued 299.2 billion won in P-CBOs (Private Collateralized Bond Obligations) in the second half of the year, supporting the financing of technology SMEs worth a total of 586.5 billion won this year.

This year, Kibo provided scale-up funds to 303 technology SMEs through its P-CBO program, a KRW 110 billion increase over the previous year. This is believed to have expanded access to the direct financing market for technology SMEs and strengthened their funding bases for each stage of growth.

P-CBOs are securitized securities issued by technology SMEs that have difficulty securing financing through their own credit. A securitization company acquires corporate bonds issued by these companies and then issues them using these bonds as the underlying asset. By providing guarantees for the debt of the securitization company, KIBO supports technology SMEs in securing stable funding.

Of the P-CBOs issued this year, KRW 522.3 billion was used to provide new funding, while KRW 64.2 billion was used to convert existing corporate bonds. Of this, KRW 79.5 billion was issued in the form of Green Asset-Backed Securities (G-ABS), supporting the financing of 33 companies that adhere to the Korean Green Taxonomy (K-Taxonomy).

G-ABS, a product introduced by KIBO in collaboration with the Ministry of Climate, Energy, and Environment and the Korea Environmental Industry & Technology Institute, will begin in 2024. To alleviate the financial burden on green economy companies, the secondary subsidy period has been extended to three years. Accordingly, the first year will receive up to 3.0 percentage points, and the second and third years will receive up to 50% of the first-year subsidy.

Kibo plans to continue issuing P-CBOs and G-ABS next year to address funding constraints for technology SMEs and support scale-up efforts, and to strengthen cooperation with relevant organizations to enhance the effectiveness of policy financing.

Kim Jong-ho, Chairman of the Korea Technology Finance Corporation (KIBO), said, “KIBO is actively supporting the realization of the third venture boom and the innovative growth of technology-based SMEs,” adding, “We will continue to expand policy support to help SMEs secure competitiveness in the global market and grow into mid-sized companies.”

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