Corporate bond factor program

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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
Classification	Details
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
Classification	Criteria	Comparison
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