Camco, Partners with KB and Kiwoom Securities as Savior for 84 Billion Won Securitization Including Hamsoa Pharmaceutical [fnMarketWatch]

[Financial News] Camco (Korea Asset Management Corporation) has joined hands with securities firms to ease corporate funding. This is done through the 'Corporate Growth Program', which provides liquidity by securitizing assets owned by companies.
According to the investment banking (IB) industry on the 13th, Camco and the lead securities firms of the 'Corporate Growth Program' for the first half of the year, KB Securities and Kiwoom Securities, will support liquidity of 84 billion won to four companies through the issuance of asset-backed securities (ABS). This is structured by securing collateral through KB Real Estate Trust and then providing loans by bridge lenders KB Securities and Kiwoom Securities.
The senior ABS is issued with an AAA rating through Camco's credit enhancement, and institutional investors such as pension funds acquire it. Camco directly acquires the 65% subordinate ABS. To this end, Camco established a special purpose company (SPC) named 'Corporate Growth 2025 First Securitization Specialized Limited Company'. It amounts to 84 billion won, including WeKeep (35 billion won), Ilseong Machinery Industry (24.5 billion won), Hamsoa Pharmaceutical (15.5 billion won), and Beauty Skin (9 billion won).
This Corporate Growth Program involves securing collateral trust for business assets such as factories or offices, and the lead securities firms provide bridge loans (short-term borrowings). The loan claims of these bridge loans are trusted as monetary claims, and based on this, securitization securities are issued.
The interest rate is about 4% with a fixed term of 3 years, and liquidity supply can last up to 5 years. Unlike primary collateralized bond obligations (P-CBO), it allows for long-term low-interest conversion of major financial debts and securing some working capital. From a corporate perspective, they can use existing business facilities while repaying debts and securing additional working capital.
Without pressure from the financial sector to recover bonds, companies can independently carry out corporate restructuring for three years until the maturity of the bonds. It is evaluated as a means to promote proactive corporate restructuring. It is expected to serve as a new safety device between companies and finance.
Previously, since 2015, Camco has supported 81 companies with approximately 1.1666 trillion won through sales and leaseback (asset purchase and re-lease). 7,215 jobs were maintained, and corporate borrowings decreased by 875.6 billion won. The liquidity ratio of companies improved by 60 percentage points, enhancing financial soundness.
An IB industry official said, "The Corporate Growth Program is a type of collateralized loan obligation (CLO). It is a method widely used by companies that find it difficult to secure funds due to deteriorating credit ratings or market conditions," adding, "As Camco participates as a subordinate investor, the interest rate can be reduced by about 2.1 percentage points compared to existing businesses. While the existing P-CBO was small-scale working capital support, the Corporate Growth Program is of a scale that allows for corporate debt restructuring. For companies facing temporary difficulties without opportunities for self-improvement of their financial structure, it will provide breathing room."
Meanwhile, Camco plans to conduct a 'Regional Specialized Pilot Project' this year in collaboration with BNK Financial Group to support local liquidity crisis companies. The target for support is small and medium-sized enterprises or mid-sized companies with headquarters or factories located in Busan, Ulsan, or Gyeongnam. The support method is the same as the Corporate Growth Program, which involves securitizing corporate assets to support financial structure improvement and liquidity securing for companies. There are plans to expand the regional specialized business to other regions in the future.
The Kiwoom Growth Program successfully securitized corporate assets worth 146.6 billion won last year. Cumulatively, it has helped 17 companies with about 278.2 billion won in asset securitization for corporate funding.

kakim@fnnews.com Kim Kyung-ah, Kang Gu-gwi Reporterkakim@fnnews.com Kim Kyung-ah, Kang Gu-gwi Reporter