JR West to issue digital bonds with benefits for retail distribution in June
West Japan Railway Company (JR West) has announced the planned issuance of retail bonds with digital benefits (nickname: “More WEST! WESTER Bonds”) on June 19, 2024. This marks the first time a railway company has issued such bonds, and will be facilitated through a digital engagement platform provided by Mizuho Financial Group.
The Bonds are registered bonds subject to the Act on Book-Entry Transfer of Corporate Bonds, Stocks, etc. and are not security token bonds.
Background of the Issuance
In April 2023, JR West established its corporate mission statement: “Connecting people, towns, and society to inspire hearts and drive the future.” In line with this mission, JR West is promoting business activities in collaboration with various partners who share their vision.
These “More WEST! WESTER Bonds” are the first digitally enhanced bonds to be issued by a railway company. Leveraging blockchain technology allows for direct engagement with individual investors — a feat previously deemed challenging.
By utilizing these unique characteristics, JR West aims to increase the number of individuals who empathize with and support their business activities. This will be achieved through investments in the Company and the unique benefits tied to bond purchases, which will allow investors to experience firsthand the appeal of JR West services and business areas.
Specifically, purchasers of the Bonds will receive WESTER Points commensurate with their purchase amount. Furthermore, those who purchase three units (300,000 yen) or more will receive one railway discount coupon that grants a 50% discount on one-way fares within the JR West area.
Additionally, 30 individuals will be selected via lottery from among those who purchase three units (300,000 yen) or more of the Bonds to participate in a “Suita General Rolling Stock Center Vehicle Photography Tour.”
Outline of the Bonds
- Name: West Japan Railway Company 80th Series Unsecured Bonds
- Nickname: More WEST! WESTER Bonds
- Term: 1 year
- Total Issue Amount: 500 million yen (planned)
- Amount per Bond Unit: 100,000 yen
- Interest rate: To be determined (preliminary range: 0.25% to 0.65%, scheduled to be decided on June 6th (Thursday))
- Payment Amount: 100 yen per 100 yen of the bond amount
- Subscription Period: June 7, 2024 (Friday) to June 18, 2024 (Tuesday)
- Issue Date: June 19, 2024 (Wednesday)
- Redemption Date: June 19, 2025 (Thursday)
- Underwriting Securities Company: Mizuho Securities
- Distributing Securities Company: Rakuten Securities
- Bond Administrator: Mizuho Bank
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