Financing

Client motivation for raising funds may be diverse, ranging from capital expenditure, M&A, financial strategy to refinancing (refunding). We leverage the comprehensive capability of Daiwa Securities group in providing the solution best suited to the needs of clients, both at home and abroad, by tapping a broad lineup of financing schemes. We also provide the client with full support from the formulation of the scheme to actual execution in order to achieve successful financing of the client.

Methods of Financing

Although methods of financing are diverse, they can be roughly divided into equity financing (equity and equity equivalents, i.e. capital) and debt financing (bond and bond equivalents). Between these two, exist mezzanine financing (hybrid securities etc.), which has the features of both capital and debt, and categories such as asset financing (securitization of assets), a means of raising funds based on pools of assets. Shown below are the main products of these four categories, respectively:

• - Equity financing: equity, preference shares, convertible bonds (CBs), stock acquisition rights, etc.
• - Debt financing: corporate bonds (Japanese yen denominated, foreign currency denominated), etc.
• - Mezzanine financing: preference securities, perpetual subordinated debt, etc.
• - Asset financing: asset-backed securities (ABS), residential mortgage-backed securities (RMBS), private real estate funds, etc.

Although “Uridashi (offering),” does not itself constitute of a fund raising for the issuer, it does represent a solution contributing to an improved shareholder distribution as well as facilitation of a large lot sale of shares by the major shareholder. As in other financings, we will offer suggestions in an effort to achieve execution that is suited to the client needs.

Support for Successful Financing

Formulating the scheme

In conducting financing, there is a wide variety of financing methods to choose from, ranging from public offering (domestic, overseas, global, etc.) to third party allotment, depending on the method and scale as well as the targeted investor segments on the horizon (individuals, corporations, institutional investors, companies with close contact, etc.) At the time of devising the specific financing method and finalizing the terms and conditions, we formulate and propose the optimal way of satisfying both “feasibility” and “client satisfaction”. This is made possible by close cooperation among the origination team with diverse knowledge of client needs, the syndication team monitoring the market and investor demand on a daily basis and the solution team engaged in product designs.

Execution

Well-experienced staff of the product team offer advice on a broad range of matters requiring specialist knowledge to achieve financing, with due consideration given to those with dealings with the client as well as those involved in the market. Such matters range from the preparation of the documentation in accordance with relevant regulations, to the handling of consultations with legal counselors/auditors and enquiries to relevant regulators along with the assistance on the clients’ disclosure (contents of the assets concerned in the case of asset financing), among others.

Our sales teams operate globally to deal with the sales part of the execution. We strive for smooth execution of financing by leveraging the industry-leading distribution network of our group, which combines our wholesales client base with the retail client base of Daiwa Securities.