Tokyo FinTech
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Tokyo FinTech

First Publicly Offered Digital Retail Bond from Japanese Corporations

SPARX Group, in cooperation with LINE Securities Corporation, and Nomura Securities, has announced that it will issue digital retail bonds as a public offering. This first offering under a framework from Japanese corporations will be available on BOOSTRY’s digital securities platform.

Background

SPARX’s mission is to encourage retail investors, especially the younger generation, to start medium- to long-term asset-building while time is on their side. To this end, SPARX planned to issue these Digital Bonds to inspire retail investors to start investing in corporate bonds and other relatively low-risk financial instruments, sparking future interest in investments.

LINE Securities’ clients consist mainly of young adults. It hopes to further expand its client base by offering investment opportunities with digital bonds, allowing investments to be completed through the LINE platform and in smaller amounts than retail corporate bonds.

By offering security tokens leveraging digital technology, Nomura Securities intends to expand its investor base in collaboration with its group companies and business partners, including LINE Securities and BOOSTRY.

Features of Digital Bonds

These are the first publicly offered digital retail bonds from Japanese corporations. Under this framework, Nomura Securities will underwrite the Digital Bonds while LINE Securities will distribute them. Using BOOSTRY’s advanced technologies and Nomura Securities’ expertise in financial technology, the framework will promote advanced financial products in smaller investment units optimized for LINE Securities’ clients.

Moreover, unlike conventional corporate bonds, the Digital Bonds can reach investors through LINE Securities. Through this connection to a new investor demographic, SPARX is considering posting regular news and videos to inform investors about how companies use the capital from these Digital Bonds and share about SPARX’s investment philosophy.

This approach of issuing small-lot digital bonds and communicating with investors through LINE Securities should convey the appeal of SPARX’s investment practices and, as a result, raise the firm’s name recognition.

Source: Nomura press release

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