Shinkin International January 2010 Introduction and Analysis.

Shinkin International

January 2010Introduction and Analysis

Shinkin International 2

Contents

Shinkin Banks 3 Japan’s Private Financial Institutions 4 Size and Performance of the Shinkin Banks 5 Shinkin Central Bank 7 Shinkin International Ltd 12 MTN Arranging Record 13 Analysis of Deal History 14 Analysis of Deals Executed in 2009 18 Issuers Placed 19 Current Investment Trends 23 Milestones for Shinkin International 24 Summary 25 Contacts 26


Shinkin Banks

Shinkin banks (“credit banks”) are cooperative financial institutions whose members are individuals and small/medium sized companies.

Shinkin banks (governed by Shinkin Bank Law) operate in a similar way to commercial banks but in principle restrict lending to members.

As at March 2009 there were 279 shinkin banks with a total of 7,671 branches throughout Japan.

Membership stands at around 9.31 million and deposits total ¥115 trillion (approx. US$ 1,171 billion) as at March 2009 - over 15% of the total deposit market in Japan.


Japan’s Private Financial Institutions

C ity B a n ksR e g io n a l B a n ksF o re ig n B a n ks

C o m m e rc ia lB a n ks

L o n g -T e rm C re d it B a n ksT ru s t B a n ks

SHINKININTERNA TIO NA L

LTD .

Shinkin CentralBank

ShinkinBanks

T h e R o k in renB a nk

L a b o u r C re d itA sso c ia tio ns

T h e S h in ku m iF e d e ra tio n B a nk

C re d itC o -o p e ra tives

O th e r C o -o p e ra tiveIn s titu t io n s, e .g .

N o rin ch u k in B a nk

S p e c ia lise d F in a n c ia lIn s titu t io ns

In su ra n ceC o m p a n ie s e tc.

O th e r F in a n c ia lIn s titu t io ns

P riva te F in a n cia l In s titu t io ns


Size of the Shinkin Banks

(US$bn equivalent as at March 2009)

City Banks 2,597

Regional Banks 2,038

Shinkin Banks 1,175

Second-tier Regional Banks 571

Credit Cooperatives 166Labour Credit Associations 160

848Agricultural Cooperatives

Deposit Balances by Sector

Sources:Japanese Bankers Association, Norinchukin Bank, National Central Society of Credit Cooperatives, National Association of Labour Banks and SCB

Shinkin Banks City Banks Regional Banks Second-TierRegional Banks

459 times

136 times192 times

145 times

Sources: Bank of Japan, Japanese Bankers Association

Deposit Growth by Bank Sector （ From March 31,1955 to March 31,2007 ）

Number of Domestic Branches　（ as of September 30,2008 ）

Note: For Shinkin Banks as of March 31, 2009Sources: Japanese Bankers Association, National Central Society of Credit Cooperatives, National Association of Labour Banks and SCB

Shinkin Banks Regional Banks

Second-Tier Regional Banks

City Banks Credit Co-operatives

Labour Credit Associations

7671 7439

32502369 1812

667

Y2005 Y2006 Y2007 Y2008 Y20090

2

4

6

8

10 8.877.77

7.09 6.986.26

Shinkin Banks

City Banks Regional Banks

Second-Tier Regional Banks

0%

2%

4%

6%

8%

10%

12%

14%11.75%

12.30%

10.21%9.36%

Y2001 Y2002 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008 Y20099%

10%

11%

12%

10.07% 10.04%

10.50%10.78%

11.23% 11.27%

11.96%11.75% 11.81%


Non - Consolidated Capital Adequacy Ratio by Bank Sector

　（ As of March 31,2009 ）Non-performing Loan Ratio of

Shinkin Banks (%)

Capital Adequacy Ratio of Shinkin Banks

Performance of the Shinkin Banks Growth in Number of Shareholders

（ Millions ）

Source: SCB

Notes: Capital adequacy requirements with flexibility measures not applied before 2008. 2009 are preliminary figures Source: SCB

Note: City Banks: BIS standard Others: Domestic standard Sources: Bank disclosure document/ Regional Banks Association of Japan/ The Second Association of Regional Banks

Source: SCB

'55.3 '60.3 '65.3 '70.3 '75.3 '80.3 '85.3 '90.3 '95.3 '00.3 '05.3 '09.30123456789

10

1.311.81

2.58

3.674.25

5.516.2

7.368.11

8.87 9.13 9.31


Shinkin Central Bank

Shinkin Central Bank (“SCB”) was established in 1950 to act as a central bank for all the shinkin banks in Japan but also acts as a financial institution in its own right.

The bank balances funding supply and demand among the shinkin banks and provide settlement and operational support.

SCB is one of Japan’s largest institutional investors. As at March 2009, the bank had assets of ¥28tn (USD 288bn).

SCB’s consolidated BIS Capital Adequacy Ratio stands at 22.91% and the non-performing loans ratio is 0.56% (as at March 2009).

SCB is the 99th largest bank in the world in terms of Tier 1 Capital strength (The Banker July 2009).


Shinkin Central Bank – Group Structure

Number 　　 279Assets 　 ¥115trnBranches 　　 7,671Members 　　 9.31m

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

ShinkinBank

Shinkin bank customers

Shinkin bank customers

　　　

Total Assets ¥28trn (US$288bn)Offices Domestic 14

Overseas 4Employees 1,078Members 279 Shinkin banks

SCBSCB

2000 H1

2000 H2

2001 H1

2001 H2

2002 H1

2002 H2

2003 H1

2003 H2

2004 H1

2004 H2

2005 H1

2005 H2

2006 H1

2006 H2

2007 H1

2007 H2

2008 H1

2008 H2

2009 H1

2009 H2

SCB City Banks average Trust Banks average

A1


Shinkin Central Bank – Ratings

SCB has maintained strong and stable long-term ratings during the last decade and avoided the Japanese financial crisis of the late 90s/ early 00s:

A2

A3

Baa1

Source: Bloomberg

Aa3

Baa2

Long-term Rating

Short-term Rating

Financial Strength Rating

JCR AAA - - R&I AA- - - S&P A+ A-1+ -

Moody's Aa3 P-1 C-

Moody’s Rating Comparison Aa2

M-T/L-T Govt Bonds38.7%

S-T Govt Bills12.0%

Muni Bonds4.5%

Corp Bonds6.5%

Stocks1.3%

Investment Trusts2.5%

Foreign Securi-ties

33.2%

Others1.2%

S-T Markets18.0%

Securities60.7%

Loans20.3%

Cash in Trust1.0%


Shinkin Central Bank – Business Overview as at March 31, 2009

(\26,734 100.0%

Short-Term Markets 4,818 18.0%

Loans & Bills Discounted 5,437 20.4%

Securities 16,202 60.6%

Cash in Trust & Others 277 1.0%

Asset Management

(\ Billion)26,239 100.0%

Deposits 18,819 71.7%

Negotiable Deposits 1 0.1%

Debentures 4,728 18.0%Borrowed Money 2,691 10.2%

Fund Raising

Billion)

Asset Management

Securities Held

SCB City Banks Regional Banks

0.10%

0.98%1.18%


220

31 15


Shinkin Central Bank – Financial Soundness

Note: Ratio of expenses = Total Expenses / Average Balance of Deposits + CDs + DebenturesSource: Japanese Bankers Association

Funds per Employee　（ As of September 30, 2008 ）

(US$ Millions)

Capital Adequacy Ratio　（ As of September 30, 2008 ）

Non-performing Loans Ratio　（ As of September 30, 2008 ）

Expenses Ratio　（ As of September 30, 2008 ）

Note: Total Funds = Deposits + CDs + DebenturesSource: Japanese Bankers Association

Note: SCB: BIS Standard City Banks: Average of 6 BanksSource: Bank Disclosure Documents Note: NPL ratio = Total risk-monitoring loans/ Total loans

Source: Financial Services Agency


17.06%

11.21% 10.97%


0.27%

1.74%

3.82%


Shinkin International Ltd. Shinkin International Ltd (a wholly owned subsidiary of Shinkin Central

Bank) was established in London in 1990 as an overseas base for securities business.

The main goals of the company are to arrange and place private EMTN draw-downs, to trade secondary eurobonds and to provide broad investment opportunities.

These activities are driven by the combined requirements of Shinkin Central Bank individual banks among the extensive shinkin network

(approximately 80% of shinkin banks have bought EMTNs) other investors in Japan and elsewhere (sourced both through direct

marketing and in co-operation with other arrangers).

We are regulated in the UK by the Financial Services Authority.


MTN and CD Arranging Record

2004 2005 20062007

　2008

　2009

　

Number of New Issues 129 301 128 256 172 130

Vanilla 19 66 36 143 103 103

Structured 110 235 92 113 69 27

Number of Issuers 56 76 58 78 55 42

Volume (¥ bn) 156 535 177 521 333 325

Vanilla 38 154 69 439 287 310

Structured 118 381 108 82 46 15

Number of Tickets 156 377 160 270 196 148

Average Issue Size (¥ bn) 1.2 1.8 1.4 2.0 1.9 2.5

Average Ticket Size (¥ bn) 1.0 1.4 1.1 1.9 1.7 2.2


Analysis of Deal History Shinkin International

Limited has been successfully arranging MTNs for Japanese wholesale investors since 1996.

Until 2004 the majority of deals were bermudan callable structures but a drop in the number of deals being called has made it more difficult to sell such notes since then.

Significantly higher deal numbers and volumes achieved in 4 of the past 5 years due to bullet transactions which are now mostly vanilla.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

50

100

150

200

250

300

Total Issuance (number of deals)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.0

100.0

200.0

300.0

400.0

500.0

600.0

Total Issuance (JPY bn equiv)


Analysis of Deal History JPY has always been our most

important issuance currency since many of our investors only have domestic operations in Japan.

Extended marketing coverage in 2004 resulted in more USD flow and this was rekindled in 2009 as a result of a favourable cross-currency basis swap.

Demand for EUR issues has been more sporadic but in 2009 we saw good demand.

Proportion of callable business has declined progressively and last year accounted for just 4% of the total amount issued (but still 20% in terms of the number of transactions executed).

2001 2002 2003 2004 2005 2006 2007 2008 20090%

20%

40%

60%

80%

100%

Deal History by Currency (volume)

EUR

USD

JPY

2001 2002 2003 2004 2005 2006 2007 2008 20090%

20%

40%

60%

80%

100%

Deal History by Termination Type (volume)

Bullet

European

Bermudan

0% 516.1

20% 1,534.2

50% 724.1

100% 161.8

Total Deals by Basel II Risk Weight (JPY bn equiv)

0% 382

20% 1003

50% 402

100% 99

Total Deals by Basel II Risk Weight (number)


Analysis of Deal History – Risk Weight Historically a majority of issues have been

for 20% risk-weighted entities, but since 2006 we have executed a significantly higher proportion of trades with 50% and 100% risk-weighted Japanese entities.

A rise in 0% risk-weighted issuance in 2009 was driven by vanilla government guaranteed bank debt during H1 and by a limited pick-up in structured callables in H2 .

*Basel I methodology until 2006, Basel II thereafter *Basel I methodology until 2006, Basel II thereafter

2003 2004 2005 2006 2007 2008 20090%

10%20%30%40%50%60%70%80%90%

100%

Deal History by Risk Weight* (no. of trades)

100%

50%

20%

0%

2003 2004 2005 2006 2007 2008 20090%

10%20%30%40%50%60%70%80%90%

100%

Deal History by Risk Weight* (JPY bn equiv)

100%

50%

20%

0%


Analysis of Deal History – Products In the early 2000s the

majority of trades were callable Step-Up Reverse Floaters and Power Reverse Dual Currency bonds but in 2004-6 structures became notably more diverse.

In the past three years volumes have been dominated by vanilla flows.

Market turmoil associated with the credit crunch led to extraordinarily high spreads being paid by high quality credits during H1 2009 and overall last year (for the first time) the majority of our revenue was obtained from arranging vanilla bonds.

2001 2002 2003 2004 2005 2006 2007 2008 20090%

20%

40%

60%

80%

100%

Deal History by Structure (volume) Nikkei

RAN

Dual/RD/PRD

CMS

Cum Inverse

SURF

Flipper

Callable Fixed/SU

Capped FRN

Vanilla

2001 2002 2003 2004 2005 2006 2007 2008 20090%

10%20%30%40%50%60%70%80%90%

100%

Deal History by Structure (fees) Nikkei

RAN

Dual/RD/PRD

CMS

Cum Inverse

SURF

Flipper

Callable Fixed/SU

Capped FRN

Vanilla

Bullet95%

Bermudan5%

2009 Issues by Call Type (JPYbn equiv volume)


Analysis of Deals Executed in 2009

Vanilla 103

Callable Fixed/SU 1

SURF 16RD/PRD 9 Nikkei 1

2009 Issues by Structure (number of deals)

JPY205.7

USD60.0

EUR58.8

2009 Issues by Currency (JPYbn equiv volume)

A satisfactory year in difficult circumstances with business dominated by relatively large vanilla issues in JPY, USD and EUR.

Structured issuance was very patchy throughout the year with only brief periods of consistent deal flow – mostly bonds either Step-Up Reverse Floaters or Reverse Dual Currency.

JPY investments still preferred but increasingly unfavourable basis swaps and tightening spreads resulted in investors taking foreign currency exposure.

We assisted some investors wishing to sell distressed debt at levels above their book valuations.


Issuers Placed In total Shinkin International has arranged MTNs for 216 different issuers since 1996. For the majority of these issuers we provide regular financing - in 56% of cases 3 or

more transactions have been executed and there are 9 issuers benefitting from over 40 completed trades.

Since 1999 we have added an average of 18 new issuers every year - but since the credit crunch investors have been much more conservative about taking new names.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

10

20

30

40

50

60

70

80

Issuers Placed

Total

New

Japan 489

France 218

Germany 193Netherlands 190

UK 162

Canada 151

Luxembourg 140

Australia 69Sweden 61

Norway 52Austria 45 Spain 25 Other 91

Total Deals by Issuer Domicile*

Japan 828.6

France 390.8

Germany 383.0 Netherlands

241.2

UK 239.1

Canada 180.9

Luxembourg 126.7

Australia 99.8

Sweden 92.7

Spain 71.3 Norway 67.6

Austria 58.8

Other 155.4

Total Volume by Issuer Domicile (JPY bn equiv)*


Issuers Placed – Geographical Distribution 50% or 100% risk-weighted (and mostly short-dated) vanilla issuance for

Japanese entities currently accounts for the highest proportion of our executed business but we are still seeing good demand for quality non-Japanese credits.

Approximately 40% of all our issues have been arranged for the core European countries of Germany, France and the Netherlands plus the UK.

A total of 291 trades into Canada and Luxembourg executed with just 12 entities.

*Location of parent if subsidiary


Issuers Placed – Vanilla bondsALLIED IRISH BANKS 2007*AMERICAN HONDA 2002BANK AUSTRIA CREDITANSTALT 2007BANK OF IRELAND 2008BANK OF NOVA SCOTIA 2008BANQUE PSA FINANCE 2003BBVA 2009BBVA SENIOR FINANCE 2006BMW JAPAN FINANCE CORP 2007BMW (UK) CAPITAL 2007BMW US CAPITAL 2009BOT LEASE CO LTD 2004CIBC 2007CHUBU ELECTRIC 2003COCA COLA AMATIL 2001CENTURY LEASING SYSTEMS 2005DAIMLER CHRYSLER AG 2002DAINIPPON INK AND CHEMICAL 2002DEVELOPMENT BANK OF JAPAN 2009EDF ENERGY PLC 2004EFG HELLAS PLC 2004EUROMOL BV 1999FINANCE FOR DANISH INDUSTRY 2007FORTIS BANK 2007FUJI PHOTO 2000FUJITSU EMEA 2005GMAC AUSTRALIA 2003GMAC INTERNATIONAL FINANCE 2003HITACHI CAP AMERICA CORP 2004HITACHI CAPITAL (UK) 2007HITACHI FINANCE 2001HITACHI INTERNATIONAL 2003HSH NORDBANK 2005

IBERDROLA FINANZAS 2005INDUSTRIAL BANK OF KOREA 2002INTESA SANPAOLO 2007ITOCHU FINANCE (EUROPE) 2006KAJIMA CAPITAL OF AMERICA 2003KOBE STEEL (AMERICA) 1999KOBE STEEL (NETHERLANDS) 2003KOMATSU EUROPEAN CC 2006KOMATSU FINANCE AMERICA 2002KOMATSU (NETHERLANDS) 2002KONICA CORP 1999KONICA MINOLTA FIN USA 2004KBC IFIMA 2008LBANK RHEINLAND PFALZ 2005LVMH JAPAN KK 2006MARUBENI EUROPE 2006MARUBENI FINANCE HOLLAND 2007MARUBENI INTL FINANCE 1999MITSUBISHI ELECTRIC 2002MITSUBISHI UFJ LEASE 2006MITSUI & CO (UK) 2001MITSUI &CO (USA) 2003MITSUI FUDOSAN 1997MITSUI OSK FINANCE 2002MITSUI OSK LINES 2008MMC INTERNATIONAL 1999MONEX BEANS HOLDINGS 2007NATIONAL AUSTRALIA BANK 2007NIPPON YUSEN KABUSHIKI 2002NISSAN 1998NISSHO IWAI 1997NKK CAPITAL 2000NKK CORPORATION 2000

NORDDEUTSCHE LBANK 2005NORDEA BANK 2007OERESUNDSFORBINDELSEN 2005ORIX AUSTRALIA 2006ORIX USA CORP 2002PLASMA LIMITED 2009RCI BANQUE 2007REICHHOLD 1998RENAULT CREDIT 2001SANTANDER INTL DEBT 2006SCOTTISH & NEWCASTLE 2001SEVERN TRENT PLC 2001SHIMUZU INTERNATIONAL 2000SOCIETE GENERALE 2009SUMI MITSUI FIN & LEASING 1999SUMISHO LEASE 2002SUMITOMO CHEMICAL (UK) 2007SUMITOMO CORP AMERICA 2005SUMITOMO CORP CAP ASIA 2006SUMITOMO REALTY 2003SUNTORY EUROPE 2007SWEDBANK 2007TEIJIN HOLDINGS NETH 2005TOKYU CORPORATION 1999TORONTO DOMINION 2000TOSHIBA INT FIN (NETH) 2000TOSHIBA CAP CORP (ASIA) 2002TOKYO LEASING 2007UNICREDITO ITALIANO 2008VATTENFALL 2000VIVENDI ENVIRONMENT SA 2001VOLVO TREASURY 2005VW FINANCIAL SERVICES 2004

* Year of first transaction


Issuers Placed – Structured NotesABBEY NATIONAL PLC 1998*ABN AMRO N.V. 1999AFRICAN DEVELOPMENT BANK 2002ANZ BANKING GROUP LIMITED 2003ARGENTARIA 1997ARTESIA 2001ASIAN DEVELOPMENT BANK 2005AUSTRIA (REPUBLIC OF) 2002BACOB 1997BANK FUER ARBEIT UND WIRTSCHAFT 2001BANK NEDERLANDSE GEMENTEN 2002BANK OF SCOTLAND 2004BANK OF YOKOHAMA 2000BARCLAYS BANK PLC 2004BAYERISCHE LANDESBANK 1998BAYERISCHE VEREINSBANK 1997BCEE 1998BCL INTERNATIONAL 2001BGB FINANCE (IRELAND) PLC 1998BUSINESS DEVELOPMENT BK OF CANADA 2001CADES 2003CAISSE CENTRALE DESJARDINS 1999CALYON 2004CALYON FINANCE (GUERNSEY) LIMITED 2005CANADIAN WHEAT BOARD 2001 CDC IXIS CAPITAL MARKETS 1999CHRISTIANIA 1997CNCEP 2001COMMONWEALTH BANK OF AUSTRALIA 2005COMMERZBANK 1999COMP DE FINANCEMENT FONCIER 2002CREDIOP 2001CREDIT AGRICOLE INDOSUEZ 2004CREDIT AGRICOLE SA 2006

CREDIT SUISSE INTERNATIONAL 2007DANSKE BANK 2005DNB NOR BANK 1997DEPFA BANK PLC 2005DEPFA DEUTSCHE PFANDBRIEF 2003DEPFA ACS BANK 2004DEXIA BIL 2001DEXIA CREDIT LOCALE 2001DEXIA FUNDING NETHERLANDS 2002DEXIA MUNICIPAL AGENCY 2005DEUTSCHE BANK 2004DRESDNER BANK 1998DZ BANK 2006EKSPORTFINANS 1999EUROHYPO 2005EXPORT DEV BANK OF CANADA 1999EXPORT FIN & INSURANCE CORP 1999FARM CREDIT CANADA 2002FIRST CHICAGO TOKIO MDP 1999FMO 2000FORTIS BANQUE LUXEMBOURG 1999HAMBURGISCHE LANDESBANK 2001HYPO ALPE-ADRIA BANK 2001HYPO TIROL 2003ING BANK NV 2004INTER-AMERICAN DEVELOPMENT BANK 2008INTL FINANCE CORPORATION 2001INSTITUTO CREDITO OFICIAL 2002KFW 2000KOMMUNALBANKEN 2001KOMMUNALKREDIT 2002KOMMUNEKREDIT 2001KOMMUNINVEST 2000LANDESBANK BADEN-WURTTEMBERG 1999

L-BANK 2004LLOYDS TSB BANK PLC 2001MERRILL LYNCH & CO 2006MITSUBISHI CORP FINANCE 2004MITSUI & CO FIN SERVICES (EUROPE) 2005MUNICIPALITY FINANCE 2002NATIONWIDE 1996NATIXIS 2007NEDERLANDSE WATERSCHAPSBANK 2002NEW SOUTH WALES TREASURY CORP 2002NIBC BANK 1999NORTH RHINE – WESTPHALIA 2003NORDIC INVESTMENT BANK 2005OBEROESTERREICHISCHE LB 2002OESTERREICHISCHE KONTROLLBANK 2005PFANDBRIEFSTELLE 2004RABOBANK 1999RENTENBANK 2001ROYAL BANK OF CANADA 2005ROYAL BANK OF SCOTLAND 2000SE BANKEN 1997SGA SOCIETE GENERALE 2004SUMITOMO CORP CAPITAL EUROPE 2004SUMITOMO CORP CAPITAL NETHERLANDS 2000SWEDBANK MORTGAGE 2004SVENSKA HANDELSBANKEN 1999SWEDISH EXPORT CREDIT 2000TOYOTA MOTOR CREDIT CORPORATION 2008VENANTIUS 2000VORALBERGER LANDES-HYPO 2001WESTLAND UTRECHT HYPO 1999WESTPAC BANKING CORP 2004

* Year of first transaction

Note: for some issuers we have arranged both vanilla and structured notes but they are only shown in the relevant list for the first transaction.

H1 20

02

H2 20

02

H1 20

03

H2 20

03

H1 20

04

H2 20

04

H1 20

05

H2 20

05

H1 20

06

H2 20

06

H1 20

07

H2 20

07

H1 20

08

H2 20

08

H1 20

09

H2 20

09

0

100

200

300

400

Call history per 6m period Not calledCalled

0

50,000

100,000

150,000

200,000

250,000

Total bond turnover (3m average)

City Banks

Trust Banks

2004

.11

2005

.03

2005

.07

2005

.11

2006

.03

2006

.07

2006

.11

2007

.03

2007

.07

2007

.11

2008

.03

2008

.07

2008

.11

2009

.03

2009

.07

0

10,000

20,000

30,000

40,000

Total bond turnover (3m average)

Regional BanksFin.Insts. for Agr. & Forestry2nd Tier RegionalShinkin Banks


Current Investment Trends Our wholesale investors have maintained good

JPY liquidity from domestic savings accounts throughout the recent crisis but have been very selective about making EMTN investments.

During 2009 demand centered on vanilla issues by government guaranteed banks, government related AAA issuers, Japanese credits and, more recently, senior unsecured bank debt.

Following the sharp tightening of credit spreads for top-quality credits, investors begun to execute structured deals again but many bonds called in H1 2009 have not yet been replaced by investors.

Recent publicity about accounting changes that will force investors to take MTM changes to P&L from 2015 is currently depressing structured note activity and we anticipate that 2010 will again be dominated by vanilla issuance.

Despite the credit crunch overall bond turnover at Shinkin Banks remains higher than the depressed levels experienced in 2006-7 (see graphs).

JPY100 Million Source: Japan Securities Dealers Association


Milestones for Shinkin International 1996: 1st MTN Issue - Nationwide Building Society

1999: 1st Issue for an Agency - Export Finance and Insurance Corp

1999: 1st Appointment to a Dealer Group - Mitsubishi Motors

2001: 1st Issue for a Supra-national - International Finance Corporation

2002: 1st Issue for a Sovereign - Republic of Austria

2003: 1st Nikkei-Linked Issue

2004: Total of arranged transactions passes JPY 1 trillion (USD 9.1bn)

2005: 1000th EMTN transaction executed

2005: A record 301 deals completed with total volume of JPY 535bn

2007: 1st Uridashi Issue - Eksportfinans

2009: Largest issue to date – Lloyds TSB Bank JPY 29.3bn


Summary

Shinkin is a co-operative financial network of local banks located throughout Japan servicing individuals and small/ medium sized businesses.

Shinkin Central Bank acts as a central bank for all the shinkin banks and is one of Japan’s strongest banks, reflected by its Aa3/A+ rating.

With deposits totaling USD 1,135 billion equivalent, Shinkin banks are active investors and, with assets of JPY 28 trillion, SCB is also one of Japan’s largest institutional investors.

Shinkin International’s relationships with SCB and the extensive shinkin bank network provides natural distribution for EMTN product.

Shinkin International ranks 4th as a 3rd party provider of JPY vanilla EMTNs in 2009 (MTNi YTD as at 12/11/09).


Contacts

Shinkin International Ltd.4th Floor, River Plate House, 7-11 Finsbury Circus, London EC2M 7YA

Managing DirectorHiroyuki Toda +44 (0)20 7562 0501

Head of Capital MarketsTakuya Sakamoto +44 (0)20 7374 4633

Associate Director, OriginationDavid Scott +44 (0)20 7374 4633

Shinkin International January 2010 Introduction and Analysis.

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Transcript of Shinkin International January 2010 Introduction and Analysis.