(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| Japanese Consumer Financing Firm to Raise Funds Abroad
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January 13, 1999 (TOKYO) -- Unimat Life Corp., a Japanese consumer financing
firm, said its new information system will be used to raise operating
funds from overseas investors.
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The system will issue securities with its credit as collateral starting
in March 1999. Nihon Unisys Ltd. will take charge of system integration.
It is rare to build such a system for credit securities issuance in the
consumer financing industry in Japan, although there are some cases
in the real estate industry offering a system for real estate securities.
Unimat's move is expected to stimulate other industries to build information
systems to issue securities with credit.
The new system is called the "special purpose company (SPC) management
system." An SPC-related law, or the law for liquidation of specific
assets by SPC, was enforced on Sept. 1, 1998 in Japan.
The purpose of the SPC law is to release the assets, including credit
and real estate, from the balance sheet and liquidate them via SPC so
that investors can invest easily. Under this structure, the assets are
to be transferred to SPC, and SPC will issue securities with the credit.
Unimat plans to register a special-purpose company abroad to handle credit
securitization. It reportedly aims to raise 30 billion yen (US$268.9
million) using the new system.
Asset securitization is not only attractive for resolving financial institutions' bad loans and liquidating collateral real estate, but also
for general companies since it enables them to finance easily by issuing
securities with properties as collateral.
Related story: Fuji TV Uses Special Purpose Co. to Raise Funds
(Nikkei
Communications)
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