TOKYO AIM to Launch TOKYO PRO-BOND Market for Professionals
TOKYO AIM, Inc. (“TOKYO AIM”) today published an outline framework for its new bond market for professional investors, the TOKYO PRO-BOND Market.
The TOKYO PRO-BOND Market is designed to be as competitive as the Euromarket and over time become a central bond market for the Asian region. The new market will enable issuers to benefit from a speed and flexibility of issuance equivalent to using Euro Medium Term Note (MTN) programs. This will be achieved through greatly simplified disclosure documents and procedures, resulting in a wider issuance window for issuers.
The TOKYO PRO-BOND Market will also, for the first time, allow English language documentation to be used enabling non-Japanese companies to issue bonds in Japan at much lower cost. Furthermore, a tax exemption on bond holdings for non-residents, implemented in June 2010, is expected to attract foreign investors to this market.
The creation of a bond market for professional investors is a central part of the Japanese government’s “New Growth Strategy,” approved by the Cabinet in June 2010, and one of the measures to be implemented during fiscal year 2010. It is also a subject under discussion at the Asian Bond Market Forum (ABMF) established by the governments of the ASEAN+3 countries.
The president and CEO of TOKYO AIM, Tetsutaro Muraki, commented: “The TOKYO PRO-BOND Market will act as a pivotal element in the development of Japan’s capital market. Through our discussions with potential issuers, investors, investment banks and other related parties, we believe that there is an intrinsic demand that is currently not being served in the region. With this new bond market, TOKYO AIM will contribute further to capital flow into Japan and Asia and support stronger economic growth in the region. “
This outline framework for the TOKYO PRO-BOND Market will be open for public consultation from November 10 to December 9, 2010.