Securitization is a method of financing based on cash flow from assets or businesses held by companies, instead of their corporate credit ratings, and has become the established funding method for companies in Japan. Our firm realized its importance early on, and has played an important role in the development of securitization since before its formative stage in Japan to the present day. We engage in assisting our clients with securitization in all asset classes, fields and structural features, from domestic to cross-border transactions. As well as handling individual transactions, we provide advice to governmental officials on the introduction of new securitization-related statutes and rules, and participate in market education or public education in connection with the development and facilitation of securitizations. For example, we deal with the securitization of a variety of traditional monetary claims, such as lease receivables, credit receivables and housing loans; securitizations highly related to policymaking, such as securitizations by government-run finance corporations and banks; implementation of various types of finance aimed at improving the capital adequacy ratio of financial institutions; securitizations of real property, which include the formation of nonrecourse loans and issuances of CMBS; credit linked loans and credit linked notes; securitizations of businesses based on cash flows from businesses, which is useful not only in terms of financing of existing business operations, but also as a financing technique in the field of M&A; and complicated finance schemes based on securitization techniques, such as EETCs (enhanced equipment trust certificates) and project bonds. We advise on creating deal structures, solving legal issues, negotiating with various parties and regulatory authorities in Japan and overseas, and preparing and drafting all types of documents from contracts to regulatory documents with the aim of devising the market standard, and are actively contributing to the development of securitization.
Practical Law Global Guide 2017 Tax on Transactions (Japan Chapter, Tax on corporate lending and bond issues)Articles