Samsung next to issue Korean CBOs

Samsung Securities is the latest Korean brokerage house to issue CBOs for its smaller corporate clients.

Samsung Securities will issue primary collateralized bond obligations (CBOs) for W401 billion (US$355 million) this week to help promising small businesses ease their financial difficulties.

The brokerage house will underwrite Monday private placements totaling W401 billion sold by 29 promising small companies which are unable to issue bonds on the basis of their own credit standing and float Wednesday primary CBOs for the same amount backed by a pool of these private placements, according to the Financial Supervisory Service.

Included in the primary CBOs are bonds totaling W100.2 billion issued by 11 companies whose investment grade is BB plus.

Last July, LG Investment and Securities issued primary CBOs totaling W1.55 trillion backed by a pool of bonds issued by 60 companies. Since then, primary CBOs have been issued seven times for a total of W4.016 trillion.

Two more brokerage houses, Shinhan and Daewoo, plan to issue primary CBOs for W900 billion each within this month, and four additional issues of the securities totaling W1.9 trillion are expected next month.


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