Corporate bond factor program

Shipping Business Management Support(including COVID-19)

Corporate bond acquisition

The Corporation purchases corporate bonds of outbound shipping companies that are suffering due to COVID-19 and provides liquidity and emergency management funds as a temporary support program for overcoming COVID-19.

Feature and Benefit

  • Introduction of a discount rate to alleviate the interest burden of high-rate corporate bonds on low-credit companies
  • Support liquidity for small and medium-sized shipping companies suffering due to COVID-19 (however, duplication support with corporate bonds acquisition business
    under the Korea Credit Guarantee Fund P-CBO program is not allowed)

Main support and condition

Main guarantee conditions
Eligibility National small and medium-sized outbound cargo transportation service providers that satisfy all the
following conditions;
① Decrease in sales or operating profit in 2022 compared to 2019
② Corporation credit rating BB- or higher
③ Debt ratio 650% or below
③ Higher than the interest coverage ratio (based on EBITDA) for the most recent year
Investment period One year
Interest rate Average bond yield by credit rating of bond rating agency (Korea Asset Rating, KIS bond rating)
Policy discount rate (10-20%) is applied to small and medium-sized shipping companies with
a credit rating of BB+ or below.
Repayment method (Principal) lump-sum repayment at maturity, (interest) quarterly payment
Joint surety Joint surety between the actual CEO* or largest shareholders
* According to the Financial Services Commission’s authoritative interpretation (largest shareholder,
more than 30% of issued stock, total shares with the fourth cousin or relatives)
* Exception: Mid-sized company listed on the stock market with an internal credit rating of BB+ or higher, or a medium-sized company with an internal credit rating of BB+ or higher may be omitted with the
requirement of joint surety.

Corporate bond purchase limit

Main guarantee conditions
Credit rating Base amount
(A: KRW 4.5 billion, BBB: KRW 3.5 billion, BB: KRW 1.5 billion)
A+, BBB+ : KRW 400 million increase,
BB+ : KRW 200 million increase
A-, BBB- : KRW 400 million reduction,
BB- : KRW 200 million reduction
Internal credit rating
Debt ratio Base section: 200%~400%
Below 200%, limit increase KRW 400 million
Exceeded 400%, reduction of limit KRW 400 million
BB rating, KRW 200 million
Interest compensation ratio Base magnification: 1.5~2.0
Exceeding 2.0, increased by KRW 400 million
Below 1.5, reduction of KRW 400 million
BB rating, KRW 200 million