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(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

New Year Special Features '99

  • Japanese Consumer Financing Firm to Raise Funds Abroad
  • 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.
    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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