韩国央行-引入绿色CLO以加强绿色融资的策略_BOK发行说明2024-21_（英）_31页_764kb

Introduction and Background:

International regulations (e.g., EU Carbon Border Adjustment Mechanism), climate disclosure standards (ISSB), and Korea's NDC targets are increasing pressure on SMEs to transition to low-carbon production structures. SMEs face challenges in accessing long-term green financing due to unfavorable funding conditions, short-term reliance on bank loans, and low credit ratings.

Green CLOs aim to provide a cost-effective capital market solution for SMEs to raise funds for investments in eco-friendly technology and low-carbon facilities.

Green CLO Issuance Structure:

Participants: Banks screen and execute green loans, SPCs pool and structure CLOs into senior and subordinated tranches, guarantee institutions provide credit enhancement, and policy authorities establish certification standards. SMEs receive financing.

Key Differences: Uses banks' extensive loan-screening networks, allowing scalability. Does not require large fiscal support (e.g., no interest subsidies).

Underlying Assets: Green loans from banks to SMEs, classified based on criteria in the K-Taxonomy framework.

Policy Considerations:

Green Loan Certification: Establish detailed criteria under the upcoming Administrative Guidelines on Green Finance. Simplify green certification and follow-up management to reduce costs and duplication.

Incentives: Offer SMEs higher investment tax credits or easier access to emission trading. Provide banks financial support (e.g., tax breaks) for credit enhancement and classify senior CLO trances as droughts in liquidity ratios (LCR).

Expected Effects:

Funding Cost Reduction: SMEs could save up to 114 basis points on secured loans and 262 basis points on unsecured loans by accessing Green CLOs instead of traditional loans.

Domestic Demand: Increased climate risk disclosure requirements under frameworks like NGFS will heighten competition among banks to expand green loan portfolios.

International Perception: Green CLOs improve Korea’s reputation in global green finance and align with international sustainability standards (EU CBAM, US carbon reduction policies).

New Investment Vehicle: Creates opportunities for domestic investors by offering long-term green investment assets, contributing to the growth of Korea’s green financing market.

Overall Assessment:

Green CLOs are viable tools to enhance SMEs' access to sustainable financing while addressing climate-related policy pressures and contributing to Korea's green transition goals.