Thursday, March 16, 2017

[美 rate hike] authorities, corporate bonds, 2.2 trillion won sized acquisitions support

[Korea hyerin nine financial newspaper reporter] got out of the card-based financial authorities to arrange for the US benchmark rate domestic bond market stabilized during hikes since last year. First, the authorities decided to pursue a total of 2.2 trillion won of corporate bond issuance scale and arguments supporting measures to support the relatively weak bond issues of interest to small and medium-sized enterprises riser. Support each 1.6 trillion won, 600 billion won on a scale issuance and acquisition.

16 days FSC and FSS jointly held a joint meeting risk inspection, to discuss the policy direction to respond to the US rate hike.

This is where jeongeunbo FSC vice chairman said, "SMEs and allow corporate bonds of medium-sized enterprises is to be actively issuing and distribution in the market operations of corporate acquisitions support programs and operating scale also will expand 6000 billion in planned 500 billion won ' .

Corporate acquisitions support programs Eligibility is BB ~ A rating of small and medium-sized enterprises that are newly issued corporate bonds. The bonds of the argument is that the US banking industry maegakbun spent 500 billion won. Acquisition target is to discuss the selection of the acid, such as credit guarantee funds, brokerage, plans to acquire up to 30% of certain companies issuing corporate bonds.

This mountain is the acquisition of 500 billion won of corporate bonds and small-scale and medium-scale enterprises issued 100 billion won of corporate bonds (BB~BBB rating) devolves established a special purpose entity (SPC). SPC will re-structuring the bonds were transferred back to the senior debt (20%), A senior debt (77%), subordinated debt (3%) of grade AAA.

AAA rated senior poles and securitization in the market targeted at institutional investors, A-grade senior poles sikidoe new album will be issued a Class A backed securities as conditions warrant more than 70% digested in the market, the US maegakbun the mountains, this argument up to 500 billion won It will hold up to maturity. The remaining 3% of the subordinated bonds issued by companies that are re-acquired.

In addition, the Vice-Chairman Chung said, "through the P-CBO SMEs to invest about 1.3 trillion won in the refinancing of bonds issued by the group, will support more than 300 billion won in the new issue.

In the case of difficult to get a small business credit rating, issuing corporate bonds and then bought it in the SPC structured as senior debt (96.5~97%) and subordinated debt (3~4.5%). Senior Releases poles is sold in a 100% guarantee to market and subordinated debt issued by the company and acquired material.

Corporate bonds received the credit rating itself is structured as a senior and mid-upper back, this argument is subordinated to the SPC. But this argument senior poles sold on the market unsold occurs when acids. The acid of the corporate acquisition support program is planned to take unsold arguments supporting capacity (5,000 million). Mid wichae is sold on the market to support the new album is 100% guaranteed. Also subordinated debt (2~3.5%) is a way of re-issuing companies acquired.

FSC officials' existing P-CBO operations are yieoteuna refinancing issue-focused support than the new issue, decided to geumbeon have actively support newly issued more than 300 billion won also in addition to refinancing, said, "the market situation, the transfer assets and grades, etc. consider emphasized the distinction that refinancing issuance, each plan to run a newly issued or to be operated jointly.

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