The Korea Technology Finance Corporation (hereinafter referred to as the “KIBO”) announced on Monday the 16th that it has issued new P-CBOs (collateralized bond obligations) worth KRW 287.3 billion in the first half of this year to enable technology SMEs to raise funds through the direct financing market.
P-CBO is a securitization security issued by a SME that has difficulty raising funds with its own credit, using the newly issued corporate bonds as the underlying asset after the SPC receives the transfer. Kibo provides guarantees for the debts assumed by the SME, thereby strengthening its credit, and supporting technology SMEs to smoothly procure long-term funds in the direct finance market.
Through this issuance, 113 technology SMEs that are struggling amidst the economic downturn and uncertain economic conditions have newly raised a total of KRW 287.3 billion with a three-year fixed interest rate. In addition, due to the recent strengthening of policy support for companies’ preemptive funding needs, the amount of new issuance this year has increased by KRW 70.1 billion compared to the same period last year, and the number of companies has also increased by 16.
In particular, KIBO issued KRW 44.5 billion of the issuance amount as green asset-backed securities (G-ABS) to support 18 companies that conduct business in accordance with the Korean Green Taxonomy (K-Taxonomy). Based on this, it is evaluated that it facilitated the financing of green economy companies and contributed to the achievement of carbon neutrality goals by activating green investment.
Green Asset-Backed Securities (G-ABS) is a product introduced in cooperation with the Ministry of Environment and the Korea Environmental Industry & Technology Institute to promote the green economy. Last year, it provided secondary reserve support of up to 4.0%p per company for one year and an interest rate reduction of 0.2%p per year for three years. This year, the secondary reserve support period has been expanded to three years, with a maximum of 3.0%p in the first year and approximately 50% of the first-year support amount in the second and third years, thereby further reducing the financial burden on green technology companies.
Kibo plans to issue additional P-CBOs and G-ABS in the second half of the year, and will provide detailed information on the support process, conditions, and targets through its website in August.
Kim Jong-ho, chairman of Kibo, said, “As our economy faces major challenges such as slowing growth and competition for global technological hegemony, Kibo will take the lead in supporting technology SMEs to overcome the liquidity crisis and secure technological competitiveness.” He added, “Kibo will actively respond to the government’s policies for economic recovery, fair growth, and transition to eco-friendly and renewable energy, and expand cooperation with relevant organizations to strengthen policy financing support so that technology SMEs that realize these policies can procure funds at low costs.”
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