Okasan Securities to issue 100th anniversary security token bond
Okasan Securities Group, Okasan Securities, Mizuho Securities, Mizuho Bank and Mitsubishi UFJ Trust and Banking Corporation— the 5 collaborating companies — will conduct a public offering of the “Okasan Securities Group 100th Anniversary Commemorative Security Token Bond”, utilizing the digital asset issuance/management platform “Progmat” as the first project in the five companies’ collaboration in the security token business.
Background
Okasan Securities Group marked its 100th anniversary on April 4, 2023. With the stated purpose of “contributing to customers’ lives as financial professionals,” it aims to contribute to development of financial markets over the medium to long term. It has also been promoting establishment of a standard framework for soliciting/issuing security token (ST) bonds, based on the vision of creating new value in capital markets.
As the first phase in this framework, it has decided to issue this ST bond commemorating the major milestone of Okasan Securities Group’s 100th anniversary. Going forward as well, through cross-industry initiatives by the collaborating companies, Okasan will endeavor to contribute to development of the financial industry and digital securities markets while providing investors with wider options.
In March 2023, Mizuho Securities conducted Japan’s first project involving exempt electronically recorded transferable rights (private real estate ST). It has also started handling “valuable securities indication rights (tokenized valuable securities).” Through initiatives utilizing digital technologies for financial instruments, Mizuho will continue contributing to sound expansion and growth of capital markets.
As the top bank for corporate bond trustee business, Mizuho Bank has leveraged its ample practical experience in corporate bond administrator and fiscal agent operations over many years. Playing a leading role in areas like corporate bond administration and fund settlement operations for ST bonds through co-operation with the collaborating companies, Mizuho views this collaboration commemorating the 100th anniversary of Okasan Securities Group as an opportunity to continue spearheading the ST bond field and contribute to vitalization and growth of the corporate bond market.
Utilizing “Progmat” licensed by Progmat, Mitsubishi UFJ Trust Bank will conduct corporate bond registry management and custody of private keys. This marks the first project involving public offering of ST bonds using “Progmat,” which is expected to bring the number of public offering cases of STs using “Progmat” to 17 and volume of assets under registry management to approximately JPY 88.2bn.
Features of this ST Bond
This ST bond utilizes “Progmat” in the first-ever public offering of an ST bond. Unlike existing schemes using the Japan Securities Depository Center (JASDEC), corporate bond registry records are managed using “Progmat” licensed by Progmat. Rights transfers and rights holder information etc. from issuance to redemption are managed electronically.
- Name: Okasan Securities Group №1 Unsecured Security Token Bond (With inter-bond pari passu clause and transfer restriction)
- Nickname: Okasan Securities Group 100th Anniversary ST Bond
- Term: 1 year
- Issue price: at par, JPY 100 per face value of JPY 100
- Issue amount: To be determined *Planned to be determined in light of demand, within maximum amount of JPY 2bn: JPY 10m
- Interest rate: To be determined
- Planned issue date: December 20, 2023
- Planned redemption date: December 20, 2024
Each company will play the roles below in the public offering of this ST bond:
- Okasan Securities Group: Issuer
- Okasan Securities: Underwriter/distributor
- Mizuho Securities: Underwriter/distributor
- Mizuho Bank: Corporate bond administrator; issue, coupon & redemption administration
- Mitsubishi UFJ Trust Bank: Corporate bond registry management using “Progmat”; custody
- Progmat: License provision of digital asset issuance/management platform “Progmat”
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