Shinkin International
Introduction and Analysis
April 2009
Contents
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Shinkin Banks
Japan’s Private Financial Institutions
Size and Performance of the Shinkin Banks
Shinkin Central Bank
Shinkin International Ltd
MTN Arranging Record
Analysis of Deal History
Analysis of Deals Executed in 2008
Issuers Placed
Current Investment Trends
Milestones for Shinkin International
Summary
Contacts
Shinkin International
3
4
5
7
12
13
14
18
19
23
24
25
26
2
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 2008 there were 281 shinkin banks with a total of 7,686
branches throughout Japan.

Membership stands at around 9.28 million and deposits total ¥114
trillion (approx. US$ 1,135 billion) as at March 2008 - over 15% of the
total deposit market in Japan.
Shinkin International
3
Japan’s Private Financial Institutions
Private Financial Institutions
City Banks
Regional Banks
Foreign Banks
Other Financial
Institutions
Specialised Financial
Institutions
Commercial
Banks
Long-Term Credit Banks
Trust Banks
Shinkin
Banks
Labour Credit
Associations
Credit
Co-operatives
Shinkin Central
Bank
The Rokinren
Bank
The Shinkumi
Federation Bank
Other Co-operative
Institutions, e.g.
Norinchukin Bank
Insurance
Companies etc.
SHINKIN
INTERNATIONAL
LTD.
Shinkin International
4
Size of the Shinkin Banks
Deposit Growth by Bank Sector
Deposit Balances by Sector
（From March 31,1955 to March 31,2007）
(US$bn equivalent as at March 2008)
459 times
City Banks
2,496
Regional Banks
1,952
Shinkin Banks
1,135
Agricultural
Cooperatives
Second-tier
Regional Banks
819
554
Credit Cooperatives
163
Labour Credit
Associations
151
192 times
136 times
Shinkin Banks
City Banks
145 times
Regional Banks
Second-Tier
Regional Banks
Sources: Bank of Japan, Japanese Bankers Association
Number of Domestic Branches
（as of March 31,2008）
7686
7434
3257
2349
1853
672
Sources:
Japanese Bankers Association, Norinchukin Bank, National Central Society of
Credit Cooperatives, National Association of Labour Banks and SCB
Shinkin
Banks
Regional
Banks
Second-Tier City Banks
Credit
Labour Credit
Regional
Cooperatives Associations
Note: For regional banks, second-tier Banks
regional banks and city banks as of September 30, 2007
Sources: Japanese Bankers Association, National Central Society of Credit Cooperatives,
National Association of Labour Banks and SCB
Shinkin International
5
Performance of the Shinkin Banks
Capital Adequacy Ratio of Shinkin Banks
Growth in Number of Shareholders
（Millions）
12%
10%
10.07%
10.04%
10.50%
10.78%
11.23%
11.27%
11.96%
11.75%
9.28
8.87 9.13
8.11
7.36
8.88%
6.2
8%
5.51
6%
3.67
4%
4.25
2.58
2%
1.31
1.81
0%
Y2000
Y2001
Y2002
Y2003
Y2004
Y2005
Y2006
Y2007
Y2008
'55.3 '60.3 '65.3 '70.3 '75.3 '80.3 '85.3 '90.3 '95.3 '00.3 '05.3 '08.3
Source: SCB
Source: SCB
Capital Adequacy Ratio by Bank Sector
Non-performing Loan Ratio of
Shinkin Banks (%)
（As of March 31,2008）
14%
12%
11.75%
12.30%
10.21%
9.36%
10%
8%
6%
4%
2%
0%
Shinkin Banks
City Banks
Regional Banks
Second-Tier
Regional Banks
Note: City Banks –Consolidated BIS Capital Adequacy Ratio
Others – Non-consolidated Capital Adequacy Ratio (domestic standard)
Sources: Bank disclosure document/ Regional Banks Association of Japan/
The Second Association of Regional Banks
12
10
8
6
4
2
0
10.15
8.87
Y2004
Y2005
7.77
7.09
6.98
Y2006
Y2007
Y2008
Note: US$ figures have been derived from JPY using FX rate
prevailing as at March 31 in each year
Source: SCB
Shinkin International
6
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
2008, the bank had assets of ¥28tn (USD 276bn).

SCB’s consolidated BIS Capital Adequacy Ratio stands at 15.95% and
the non-performing loans ratio is 0.27% (as at March 2008).

SCB is the 94th largest bank in the world in terms of Tier 1 Capital
strength (The Banker July 2008).
Shinkin International
7
Shinkin Central Bank – Group Structure
SCB
Total Assets ¥28trn (US$276bn)
Offices
Domestic 13
Overseas 4
Employees 1,066
Members
281 Shinkin banks
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Number
281
Assets
¥120trn
Branches 7,686
Employees 112,362
Members 9,255,468
Shinkin bank
customers
Shinkin bank
customers
Shinkin International
8
Shinkin Central Bank – Ratings
JCR
R&I
S&P
Moody's
Long-term
Rating
AAA
AAA+
Aa2
Short-term
Rating
A-1+
P-1
Financial
Strength Rating
C
NOTES:
(1) SCB’s Moody’s long-term rating was raised from
A1 to Aa2 on 4th May, 2007 to reflect the potential for
external support in the event of default.
(2) No Japanese bank has a higher Moody’s
underlying financial strength rating than SCB.
(3) S&P does not rate any Japanese bank higher than
A+.
SCB has maintained strong and stable long-term ratings during the last
decade and has outperformed most other Japanese financial institutions:

Moody’s Rating Comparison
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
SCB
City Banks average
Trust Banks average
Shinkin International
Source: Bloomberg
9
Asset Management
Shinkin Central Bank –
Funding and Assets
Cash in Trust
2.4%
S-T Markets
9.4%
Loans
22.8%
(\ Billion)
Fund Raising
25,115
100.0%
Deposits
18,633
74.2%
0.3%
Debentures
81
4,460
Borrowed Money
1,941
Negotiable Deposits
17.8%
7.7%
Securities
65.4%
Securities Held
As at 31/3/08
Others
0.9%
(\ Billion)
Asset Management
25,669
100.0%
Short-Term Markets
2,432
9.5%
Loans & Bills Discounted
5,853
22.8%
16,765
619
65.3%
2.4%
Securities
Cash in Trust & Others
As at 31/3/08
Shinkin International
Foreign
Securities
27.3%
Investment Trusts
4.9%
Securities
1.6%
Corp Bonds
7.1%
Govt Bonds
54.5%
Muni Bonds
3.7%
10
Shinkin Central Bank – Financial Soundness
Capital Adequacy Ratio
Non-performing Loans Ratio
（As of March 31,2008）
（As of September 30,2007）
3.92%
15.95%
12.48%
11.19%
1.66%
0.27%
SCB
City Banks
Regional Banks
SCB
Note: SCB – City Banks – Average of financial holdings
Source: Bank Disclosure Documents
Regional Banks
Note: Ratio = Total risk-monitored loans/ Total loans
Source: Financial Services Agency
Funds per Employee
222
City Banks
Expenses Ratio
（As of September 30,2007）
(US$ Millions)
（As of September 30,2007）
1.18%
0.94%
32
SCB
City Banks
Note: Total Funds = Deposits + CDs + Debentures
Source: Japanese Bankers Association
15
0.10%
Regional Banks
SCB
City Banks
Regional Banks
Note: Ratio = Total Expenses / Average Balance of Deposits + CDs + Debentures
Source: Japanese Bankers Association
Shinkin International
11
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.

We are regulated in the UK by the Financial Services Authority.
Shinkin International
12
MTN Arranging Record
2004
2005
2006
2007
2008
2009*
129
301
128
256
172
22
19
66
36
143
103
20
Structured
110
235
92
113
69
2
Number of Issuers
56
76
58
78
55
18
156
535
177
521
333
105
38
154
69
439
287
104
Structured
118
381
108
82
46
1
Number of Tickets
156
377
160
270
196
26
Average Issue Size (¥ bn)
1.2
1.8
1.4
2.0
1.9
4.8
Average Ticket Size (¥ bn)
1.0
1.4
1.1
1.9
1.7
4.0
Number of New Issues
Vanilla
Volume (¥ bn)
Vanilla
* as at 27/3/09
Shinkin International
13
Analysis of Deal History



Shinkin International
Limited has been
successfully arranging
MTNs for Japanese
wholesale investors since
1996.
Deal flows built up to a
peak in 2002 and the early
part of 2003 but a drop in
the number of deals being
called has made it more
difficult to sell structured
notes since then.
Significantly higher deal
numbers and volumes
achieved in 3 of the past 4
years due to bullet
transactions which are
now mostly vanilla.
Total Issuance (number of deals)
300
250
200
150
100
50
0
Y1996 Y1997 Y1998 Y1999 Y2000 Y2001 Y2002 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008
Total Issuance (JPY bn equiv)
600.0
500.0
400.0
300.0
200.0
100.0
0.0
Y1996 Y1997 Y1998 Y1999 Y2000 Y2001 Y2002 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008
Shinkin International
14
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 but activity now limited by
investor funding constraints.
EUR deals executed in 2005
due to some exceptional bullet
investments.
Proportion of callable business
has declined since 2003 and
last year accounted for just
14% of the total amount issued
(but still 40% in terms of the
number of transactions
executed).
Deal History by Currency (volume)
100%
80%
EUR
60%
USD
40%
JPY
20%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Deal History by Termination Type (volume)
100%
80%
60%
Bullet
40%
European
Bermudan
20%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Shinkin International
15
Analysis of Deal History – Risk Weight
Total Deals by Basel II Risk Weight
(number)
100% 94

0% 361
50% 350

20% 951
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.
Until Q4 2008 0% risk-weighted issuance
mostly comprised structured callable deals
but attention has now shifted to bank vanilla
government guaranteed debt.
Deal History by Risk Weight* (no. of trades)
Total Deals by Basel II Risk Weight
(JPY bn equiv)
100%
148.5
50%
633.9
0% 439.2
20%
1,390.2
Deal History by Risk Weight* (JPY bn equiv)
100%
100%
80%
100%
80%
100%
60%
50%
60%
50%
20%
40%
20%
40%
0%
0%
20%
20%
0%
0%
2002 2003 2004 2005 2006 2007 2008
2002 2003 2004 2005 2006 2007 2008
*Basel I methodology until 2006, Basel II thereafter
*Basel I methodology until 2006, Basel II thereafter
Shinkin International
16
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
2004-7 structures became
notably more diverse.
In the past two years
volumes have been
dominated by vanilla flows.
Deal History by Structure (volume)
RAN
100%
Dual/RD/PRD
CMS
80%
Cum Inverse
60%
SURF
40%
Flipper
20%
Callable Fixed/SU
Capped FRN
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Deal History by Structure (fees)
Nikkei

RAN
Dual/RD/PRD
100%
CMS
80%
Cum Inverse
60%
SURF
40%
Flipper
20%
Callable Fixed/SU
0%
Capped FRN
2000
2001
2002
2003
2004
2005
2006
Nikkei
2007
2008
Vanilla
Shinkin International

Vanilla
PRDC and Nikkei-linked
issues are normally for small
amounts but until Q4 2008
still generated a significant
proportion of fee income.
Although many Step-Up
Reverse Floaters are now
getting called, in the current
climate there is little
expectation of an early return
to structured investment.
17
Analysis of Deals Executed in 2008





A successful year in difficult
circumstances with business
dominated by relatively large JPYdenominated vanilla issues.
Structured issuance remained an
important component of deal flow
until September with Reverse
Dual Currency structures most
favoured.
Little demand for JPY Step-Up
Reverse Floaters despite increase
in call ratio towards the end of the
year as interest rates fell.
Non-JPY investments prevented
by higher wholesale funding costs.
More buyback requests received
than normal but only 5 issues
were fully or partly redeemed.
2008 Issues by Structure
(number of deals)
Nikkei 8
RD/PRD 36
RAN 3
Vanilla 103
SURF 11
Callable Fixed/SU
6
SURF 7.4
Callable Fixed/SU
7.0
Capped FRN 8.5
Shinkin International
Capped FRN 5
2008 Issues by Structure
(JPY bn equiv volume)
RD/PRD 17.4
RAN 1.6
Nikkei 3.8
Vanilla 287.1
18
Issuers Placed



In total Shinkin International has arranged MTNs for 204 different issuers since
1996.
For the majority of these issuers we provide regular financing - in 58% 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 19 new issuers every year.
Issuers Placed
80
70
60
50
Total
40
New
30
20
10
0
Y1996
Y1998
Y2000
Y2002
Y2004
Shinkin International
Y2006
Y2008
19
Issuers Placed – Geographical Distribution



50% or 100% risk-weighted short-dated vanilla issuance for Japanese entities
currently accounts for the majority of our executed business but we are still seeing
demand for non-Japanese credits.
Approximately 42% 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 only 12 entities.
Spain 22
Total Deals by Issuer Domicile*
Austria 45
Spain 48.6
Austria 58.8
Other 77
Total Volume by Issuer Domicile
(JPY bn equiv)*
Other 134.6
Norway 60.9
Norway 48
Sweden 56
Australia 61
Japan 422
Australia
85.5 88.3
Sweden
Japan 720.3
Luxembourg
126.7
Canada
180.9
Luxembourg
140
France 211
Canada 151
Germany
353.2
UK 193.8
UK 160
Netherlands
226.3
Germany 187
Netherlands
176
France 333.7
*Location of parent if subsidiary
Shinkin International
20
Issuers Placed – Vanilla bonds
ALLIED IRISH BANKS 2007*
AMERICAN HONDA 2002
BANK AUSTRIA CREDITANSTALT 2007
BANK OF IRELAND 2008
BANK OF NOVA SCOTIA 2008
BANQUE PSA FINANCE 2003
BBVA SENIOR FINANCE 2006
BMW JAPAN FINANCE CORP 2007
BMW (UK) CAPITAL 2007
BOT LEASE CO LTD 2004
CIBC 2007
CHUBU ELECTRIC 2003
COCA COLA AMATIL 2001
CENTURY LEASING SYSTEMS 2005
DAIMLER CHRYSLER AG 2002
DAINIPPON INK AND CHEMICAL 2002
DEVELOPMENT BANK OF JAPAN 2009
EDF ENERGY PLC 2004
EFG HELLAS PLC 2004
EUROMOL BV 1999
FINANCE FOR DANISH INDUSTRY 2007
FORTIS BANK 2007
FUJI PHOTO 2000
FUJITSU EMEA 2005
GMAC AUSTRALIA 2003
GMAC INTERNATIONAL FINANCE 2003
HITACHI CAP AMERICA CORP 2004
HITACHI CAPITAL (UK) 2007
HITACHI FINANCE 2001
HITACHI INTERNATIONAL 2003
HSH NORDBANK 2005
IBERDROLA FINANZAS 2005
INDUSTRIAL BANK OF KOREA 2002
INDUSTRIAL BANK OF KOREA 2002
INTESA SANPAOLO 2007
ITOCHU FINANCE (EUROPE) 2006
KAJIMA CAPITAL OF AMERICA 2003
KOBE STEEL (AMERICA) 1999
KOBE STEEL (NETHERLANDS) 2003
KOMATSU EUROPEAN CC 2006
KOMATSU FINANCE AMERICA 2002
KOMATSU (NETHERLANDS) 2002
KONICA CORP 1999
KONICA MINOLTA FIN USA 2004
KBC IFIMA 2008
LBANK RHEINLAND PFALZ 2005
LVMH JAPAN KK 2006
MARUBENI EUROPE 2006
MARUBENI FINANCE HOLLAND 2007
MARUBENI INTL FINANCE 1999
MITSUBISHI ELECTRIC 2002
MITSUBISHI UFJ LEASE 2006
MITSUI & CO (UK) 2001
MITSUI &CO (USA) 2003
MITSUI FUDOSAN 1997
MITSUI OSK FINANCE 2002
MITSUI OSK LINES 2008
MMC INTERNATIONAL 1999
MONEX BEANS HOLDINGS 2007
NATIONAL AUSTRALIA BANK 2007
NIPPON YUSEN KABUSHIKI 2002
NISSAN 1998
NISSHO IWAI 1997
NKK CAPITAL 2000
NKK CORPORATION 2000
NORDDEUTSCHE LBANK 2005
NORDEA BANK 2007
OERESUNDSFORBINDELSEN 2005
ORIX AUSTRALIA 2006
ORIX USA CORP 2002
PLASMA LIMITED 2009
RCI BANQUE 2007
REICHHOLD 1998
RENAULT CREDIT 2001
SANTANDER INTL DEBT 2006
SCOTTISH & NEWCASTLE 2001
SEVERN TRENT PLC 2001
SHIMUZU INTERNATIONAL 2000
SUMI MITSUI FIN & LEASING 1999
SUMISHO LEASE 2002
SUMITOMO CHEMICAL (UK) 2007
SUMITOMO CORP AMERICA 2005
SUMITOMO CORP CAP ASIA 2006
SUMITOMO REALTY 2003
SUNTORY EUROPE 2007
SWEDBANK 2007
TEIJIN HOLDINGS NETH 2005
TOKYU CORPORATION 1999
TORONTO DOMINION 2000
TOSHIBA INT FIN (NETH) 2000
TOSHIBA CAP CORP (ASIA) 2002
TOKYO LEASING 2007
UNICREDITO ITALIANO 2008
VATTENFALL 2000
VIVENDI ENVIRONMENT SA 2001
VOLVO TREASURY 2005
VW FINANCIAL SERVICES 2004
* Year of first transaction
Shinkin International
21
Issuers Placed – Structured Notes
ABBEY NATIONAL PLC 1998*
ABN AMRO N.V. 1999
AFRICAN DEVELOPMENT BANK 2002
ANZ BANKING GROUP LIMITED 2003
ARGENTARIA 1997
ARTESIA 2001
ASIAN DEVELOPMENT BANK 2005
AUSTRIA (REPUBLIC OF) 2002
BACOB 1997
BANK FUER ARBEIT UND WIRTSCHAFT 2001
BANK NEDERLANDSE GEMENTEN 2002
BANK OF SCOTLAND 2004
BANK OF YOKOHAMA 2000
BARCLAYS BANK PLC 2004
BAYERISCHE LANDESBANK 1998
BAYERISCHE VEREINSBANK 1997
BCEE 1998
BCL INTERNATIONAL 2001
BGB FINANCE (IRELAND) PLC 1998
BUSINESS DEVELOPMENT BK OF CANADA 2001
CADES 2003
CAISSE CENTRALE DESJARDINS 1999
CALYON 2004
CALYON FINANCE (GUERNSEY) LIMITED 2005
CANADIAN WHEAT BOARD 2001
CDC IXIS CAPITAL MARKETS 1999
CHRISTIANIA 1997
CNCEP 2001
COMMONWEALTH BANK OF AUSTRALIA 2005
COMMERZBANK 1999
COMP DE FINANCEMENT FONCIER 2002
CREDIOP 2001
CREDIT AGRICOLE INDOSUEZ 2004
CREDIT AGRICOLE SA 2006
CREDIT SUISSE INTERNATIONAL 2007
DANSKE BANK 2005
DNB NOR BANK 1997
DEPFA BANK PLC 2005
DEPFA DEUTSCHE PFANDBRIEF 2003
DEPFA ACS BANK 2004
DEXIA BIL 2001
DEXIA CREDIT LOCALE 2001
DEXIA FUNDING NETHERLANDS 2002
DEXIA MUNICIPAL AGENCY 2005
DEUTSCHE BANK 2004
DRESDNER BANK 1998
DZ BANK 2006
EKSPORTFINANS 1999
EUROHYPO 2005
EXPORT DEV BANK OF CANADA 1999
EXPORT FIN & INSURANCE CORP 1999
FARM CREDIT CANADA 2002
FIRST CHICAGO TOKIO MDP 1999
FMO 2000
FORTIS BANQUE LUXEMBOURG 1999
HAMBURGISCHE LANDESBANK 2001
HYPO ALPE-ADRIA BANK 2001
HYPO TIROL 2003
ING BANK NV 2004
INTER-AMERICAN DEVELOPMENT BANK 2008
INTL FINANCE CORPORATION 2001
INSTITUTO CREDITO OFICIAL 2002
KFW 2000
KOMMUNALBANKEN 2001
KOMMUNALKREDIT 2002
KOMMUNEKREDIT 2001
KOMMUNINVEST 2000
LANDESBANK BADEN-WURTTEMBERG 1999
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.
L-BANK 2004
LLOYDS TSB BANK PLC 2001
MERRILL LYNCH & CO 2006
MITSUBISHI CORP FINANCE 2004
MITSUI & CO FIN SERVICES (EUROPE) 2005
MUNICIPALITY FINANCE 2002
NATIONWIDE 1996
NATIXIS 2007
NEDERLANDSE WATERSCHAPSBANK 2002
NEW SOUTH WALES TREASURY CORP 2002
NIBC BANK 1999
NORTH RHINE – WESTPHALIA 2003
NORDIC INVESTMENT BANK 2005
OBEROESTERREICHISCHE LB 2002
OESTERREICHISCHE KONTROLLBANK 2005
PFANDBRIEFSTELLE 2004
RABOBANK 1999
RENTENBANK 2001
ROYAL BANK OF CANADA 2005
ROYAL BANK OF SCOTLAND 2000
SE BANKEN 1997
SGA SOCIETE GENERALE 2004
SUMITOMO CORP CAPITAL EUROPE 2004
SUMITOMO CORP CAPITAL NETHERLANDS 2000
SWEDBANK MORTGAGE 2004
SVENSKA HANDELSBANKEN 1999
SWEDISH EXPORT CREDIT 2000
TOYOTA MOTOR CREDIT CORPORATION 2008
VENANTIUS 2000
VORALBERGER LANDES-HYPO 2001
WESTLAND UTRECHT HYPO 1999
WESTPAC BANKING CORP 2004
* Year of first transaction
Shinkin International
22
Current Investment Trends






Our wholesale investors still have good JPY
liquidity from domestic savings accounts but are
very selective about making EMTN investments.
Consequently although we are executing fewer
trades the average size has risen sharply.
Demand has concentrated on medium term issues
by government guaranteed banks and other
government related AAA issuers.
Overall bond turnover at Shinkin Banks in 2008
has recovered notably from the depressed levels
experienced during the previous couple of years.
Recent declines in the Nikkei index mean that all
outstanding digital ELNs are expected to be below
the 0.1% coupon barrier level at the next coupon
determination date. Coupons on PRDs are also
suffering from JPY appreciation.
Although flows since September 2008 have been
dominated by vanilla issuance there is now some
limited interest to replace called inverse floater
structured deals.
Call history per 6m period
400
350
300
250
200
150
100
50
0
Not called
Called
JPY100 Million
Source: Japan Securities Dealers Association
Shinkin International
23
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 JPY 29.3bn
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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 Aa2/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 3rd as a provider of JPY interest rate
EMTNs in 2008 (CMD 1/1 - 14/8).
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Contacts
Shinkin International Ltd.
4th Floor, River Plate House, 7-11 Finsbury Circus, London EC2M 7YA
Managing Director
Hiroyuki Toda
+44 (0)20 7562 0501
Head of Capital Markets
Takuya Sakamoto
+44 (0)20 7374 4633
Associate Director, Origination
David Scott
+44 (0)20 7374 4633
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