Shinkin International
Introduction and Analysis
January 2010
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 2009
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 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.
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 2009)
459 times
City Banks
2,597
Regional Banks
2,038
Shinkin Banks
1,175
Agricultural
Cooperatives
Second-tier
Regional Banks
192 times
136 times
Shinkin Banks
848
166
Labour Credit
Associations
160
Sources:
Japanese Bankers Association, Norinchukin Bank, National Central Society of
Credit Cooperatives, National Association of Labour Banks and SCB
Regional Banks
Second-Tier
Regional Banks
Sources: Bank of Japan, Japanese Bankers Association
Number of Domestic Branches
571
Credit Cooperatives
City Banks
145 times
（as of September 30,2008）
7671
7439
3250
2369
1812
667
Shinkin Banks Regional Banks Second-Tier
Regional Banks
City Banks
Credit
Cooperatives
Labour Credit
Associations
Note: For Shinkin Banks as of March 31, 2009
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
11.96%
12%
11.23%
12%
（Millions）
11.75%
11.81%
10.50%
10.07%
10.04%
10%
10%
9%
Y2001
Y2002
Y2003
Y2004
Y2005
Y2006
Y2007
Y2008
9.31
8.87 9.13
10
9
8
7
6
5
4
3
2
1
0
11.27%
10.78%
11%
11%
Growth in Number of Shareholders
Y2009
Notes: Capital adequacy requirements with flexibility measures not applied before 2008.
2009 are preliminary figures
Source: SCB
8.11
7.36
5.51
3.67
6.2
4.25
2.58
1.81
1.31
'55.3 '60.3 '65.3 '70.3 '75.3 '80.3 '85.3 '90.3 '95.3 '00.3 '05.3 '09.3
Source: SCB
Non - Consolidated Capital Adequacy
Ratio by Bank Sector
Non-performing Loan Ratio of
Shinkin Banks (%)
（As of March 31,2009）
14%
12%
10%
8%
6%
4%
2%
0%
11.75%
12.30%
10.21%
10
9.36%
8.87
7.77
8
7.09
6.98
Y2007
Y2008
6.26
6
4
Shinkin Banks
City Banks
Regional
Banks
Second-Tier
Regional
Banks
Note: City Banks: BIS standard Others: Domestic standard
Sources: Bank disclosure document/ Regional Banks Association of Japan/
The Second Association of Regional Banks
2
0
Y2005
Y2006
Y2009
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
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 International
7
Shinkin Central Bank – Group Structure
SCB
Total Assets ¥28trn (US$288bn)
Offices
Domestic 14
Overseas 4
Employees 1,078
Members
279 Shinkin banks
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Shinkin
Bank
Number
279
Assets
¥115trn
Branches 7,671
Members 9.31m
Shinkin bank
customers
Shinkin bank
customers
Shinkin International
8
Shinkin Central Bank – Ratings
JCR
R&I
S&P
Moody's
Long-term
Rating
AAA
AAA+
Aa3
Short-term
Rating
A-1+
P-1
Financial
Strength Rating
C-
SCB has maintained strong and stable long-term ratings during the last
decade and avoided the Japanese financial crisis of the late 90s/ early 00s:

Aa2
Moody’s Rating Comparison
Aa3
A1
A2
A3
Baa1
Baa2
2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
Source: Bloomberg
SCB
City Banks average
Trust Banks average
Shinkin International
9
Shinkin Central Bank –
Business Overview
Asset Management
Cash in Trust
1.0%
as at March 31, 2009
S-T
Markets
18.0%
Loans
20.3%
(\ Billion)
Fund Raising
26,239
100.0%
Deposits
18,819
71.7%
0.1%
Debentures
1
4,728
Borrowed Money
2,691
Negotiable Deposits
18.0%
10.2%
Securities
60.7%
Securities Held
Others
1.2%
(\ Billion)
Asset Management
26,734
Short-Term Markets
4,818
Loans & Bills Discounted
5,437
20.4%
16,202
277
60.6%
1.0%
Securities
Cash in Trust & Others
100.0%
18.0%
Investment Trusts
2.5%
Stocks
1.3%
Corp Bonds
6.5%
Shinkin International
M-T/L-T Govt
Bonds
38.7%
Foreign Securities
33.2%
S-T Govt
Bills
12.0%
Muni Bonds
4.5%
10
Shinkin Central Bank – Financial Soundness
Capital Adequacy Ratio
Non-performing Loans Ratio
（As of September 30, 2008）
（As of September 30, 2008）
17.06%
3.82%
11.21%
10.97%
1.74%
0.27%
SCB
City Banks
Regional Banks
Note: SCB: BIS Standard City Banks: Average of 6 Banks
Source: Bank Disclosure Documents
SCB
Regional Banks
Note: NPL ratio = Total risk-monitoring loans/ Total loans
Source: Financial Services Agency
Funds per Employee
Expenses Ratio
（As of September 30, 2008）
(US$ Millions)
（As of September 30, 2008）
1.18%
220
SCB
City Banks
0.98%
31
15
0.10%
City Banks
Regional Banks
SCB
Note: Total Funds = Deposits + CDs + Debentures
Source: Japanese Bankers Association
City Banks
Regional Banks
Note: Ratio of expenses = 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 (sourced both through direct
marketing and in co-operation with other arrangers).

We are regulated in the UK by the Financial Services Authority.
Shinkin International
12
MTN and CD Arranging Record
2004
2005
2006
2007
2008
2009
129
301
128
256
172
130
19
66
36
143
103
103
Structured
110
235
92
113
69
27
Number of Issuers
56
76
58
78
55
42
156
535
177
521
333
325
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
Number of New Issues
Vanilla
Volume (¥ bn)
Vanilla
Shinkin International
13
Analysis of Deal History
Total Issuance (number of deals)



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.
300
250
200
150
100
50
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Total Issuance (JPY bn equiv)
600.0
500.0
400.0
300.0
200.0
100.0
0.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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 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).
Deal History by Currency (volume)
100%
80%
60%
EUR
40%
USD
JPY
20%
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009
Deal History by Termination Type (volume)
100%
80%
60%
Bullet
40%
European
Bermudan
20%
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009
Shinkin International
15
Analysis of Deal History – Risk Weight
Total Deals by Basel II
Risk Weight (number)

100% 99
50% 402
0% 382

20%
1003
Historically a majority of issues have been Total Deals by Basel II Risk
Weight (JPY bn equiv)
for 20% risk-weighted entities, but since
100%
2006 we have executed a significantly
161.8
0%
higher proportion of trades with 50% and
516.1
50%
724.1
100% risk-weighted Japanese entities.
A rise in 0% risk-weighted issuance in 2009
was driven by vanilla government
20%
guaranteed bank debt during H1 and by a
1,534.2
limited pick-up in structured callables in H2 .
Deal History by Risk Weight* (no. of trades)
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%
2003 2004 2005 2006 2007 2008 2009
*Basel I methodology until 2006, Basel II thereafter
2003 2004 2005 2006 2007 2008 2009
*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
2004-6 structures became
notably more diverse.
In the past three 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%
2001 2002 2003 2004 2005 2006 2007 2008 2009
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
2001
2002
2003
2004
2005
2006
2007
Nikkei
2008
2009
Vanilla
Shinkin International

Vanilla
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.
17
Analysis of Deals Executed in 2009




A satisfactory year in difficult
circumstances with business
dominated by relatively large
RD/PRD 9
Nikkei 1
vanilla issues in JPY, USD and
SURF 16
Callable Fixed/SU
EUR.
1
Structured issuance was very
patchy throughout the year with
only brief periods of consistent
deal flow – mostly bonds either
Step-Up Reverse Floaters or
2009 Issues by Currency
Reverse Dual Currency.
(JPYbn equiv volume)
JPY investments still preferred but
EUR
increasingly unfavourable basis
58.8
swaps and tightening spreads
resulted in investors taking foreign USD
60.0
currency exposure.
JPY
205.7
We assisted some investors
wishing to sell distressed debt at
levels above their book valuations.
Shinkin International
2009 Issues by Structure
(number of deals)
Vanilla 103
2009 Issues by Call Type
(JPYbn equiv volume)
Bermudan
5%
Bullet
95%
18
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.
Issuers Placed
80
70
60
50
Total
40
New
30
20
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Shinkin International
19
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.
Total Deals by
Issuer Domicile*
Spain 25
Austria 45
Other 91
Spain 71.3
Norway 52
Sweden 61
Australia 69
Japan 489
Luxembourg
140
Canada 151
Austria 58.8
France 218
Other 155.4
Sweden
92.7
Australia
99.8
Luxembourg
126.7
Japan
828.6
Canada
180.9
UK 239.1
UK 162
Netherlands 190
Norway
67.6
Total Volume by Issuer Domicile
(JPY bn equiv)*
Netherlands
241.2
Germany 193
France
390.8
Germany
383.0
*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 2009
BBVA SENIOR FINANCE 2006
BMW JAPAN FINANCE CORP 2007
BMW (UK) CAPITAL 2007
BMW US CAPITAL 2009
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
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
SOCIETE GENERALE 2009
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





Call history per 6m period
400
300
Our wholesale investors have maintained good
200
JPY liquidity from domestic savings accounts
100
throughout the recent crisis but have been very
0
selective about making EMTN investments.
During 2009 demand centered on vanilla issues by
government guaranteed banks, government
Total bond turnover
related AAA issuers, Japanese credits and, more (3m average)
40,000
recently, senior unsecured bank debt.
30,000
Following the sharp tightening of credit spreads for 20,000
top-quality credits, investors begun to execute
10,000
structured deals again but many bonds called in
0
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
Total bond turnover
2015 is currently depressing structured note
(3m average)
250,000
activity and we anticipate that 2010 will again be
200,000
dominated by vanilla issuance.
150,000
100,000
Despite the credit crunch overall bond turnover at 50,000
0
Shinkin Banks remains higher than the depressed
levels experienced in 2006-7 (see graphs).
Not called
Called
Regional Banks
Fin.Insts. for Agr. & Forestry
2nd Tier Regional
Shinkin Banks
City Banks
Trust Banks
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 Bank JPY 29.3bn
Shinkin International
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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 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).
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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
Shinkin International
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