KIBO Issues 550 Billion Won in P-CBOs This Year to Support Technology SMEs
Growth Capital Supply
New Introduction of R&D Commercialization Securitization Guarantees
Korea Technology Finance Corporation (KIBO) said on Nov. 12 that it issued primary collateralized bond obligations (P-CBOs) totaling 555 billion won this year, helping 336 technology-focused small and medium-sized enterprises (SMEs) secure financing.
KIBO supported 129 companies by issuing 238.9 billion won in P-CBOs in the first half of this year, then supplied financing to 207 companies through an additional issuance of 316.1 billion won on Nov. 5.
P-CBOs are securitized bonds backed by newly issued corporate bonds from technology-focused SMEs that have difficulty raising funds on their own credit. A special purpose company (SPC) acquires the corporate bonds and issues securities backed by them. KIBO provides guarantees for the SPC's obligations, helping technology-focused SMEs raise funds reliably in the direct financing market.
Of this year's P-CBO issuance, 393.8 billion won was for new funding and 161.2 billion won was for refinancing existing corporate bonds. In particular, 81.8 billion won of the new funding was issued as green asset-backed securities (G-ABS), supporting the smooth financing of 39 eco-friendly technology companies.
This year, KIBO also introduced "R&D Commercialization Securitization Guarantees" to promote the commercialization of research and development (R&D) results. Through this second-half issuance, it provided 89 billion won in funding to 40 companies. The guarantees are for companies pursuing the commercialization of technologies developed under completed government R&D projects or transferred from public research institutions.
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KIBO plans to continue expanding the supply of growth capital through P-CBOs and strengthen specialized financial support for green initiatives and R&D commercialization to actively meet the diverse financing needs of technology-focused SMEs. KIBO Chairman Kwon Hyungtaek said, "We will continue to improve technology companies' access to capital markets and strengthen financial support tailored to their financing needs at each stage of growth."
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