Launch of Structured Bond Utilizing Japanese Domestic Arrangement
The Bank currently sells structured bonds arranged by Aozora Securities Co., Ltd mainly to our retail customers as part of Aozora's financial instruments intermediary business. This new product will serve to enhance the Bank's product line-up in response to the diversified needs of our customers, and make possible the provision of highly innovative asset management products to our senior generation mass affluent customers, a super focus for the Bank.
Structured bonds provided by the Bank to date have comprised foreign bonds issued primarily by overseas financial institutions. As our new Trust Bond is the first Japanese domestic bond using bank time deposits as the main trust property, customers will be better able to understand the product, including the details of the agreement and credit risk involved. In addition, Aozora Bank Group's in-house arrangement will enable a higher degree of flexibility, as well as cost cutting, in order to provide a structured bond offering more favorable terms to our customers.
The Trust Bond will be provided at the Bank's head office and respective branches as a financial instruments intermediary product, as with existing structured bonds.
Going forward, the Bank and Aozora Securities will also consider collaborating with various financial institutions in order to provide a broad range of structured bonds employing a public issue trust bond arrangement.
Aozora aims to become a "Primary Secondary Bank: An Even More Reliable Partner" through the provision of highly differentiated and specialized financial services, and we remain committed to supporting the asset management needs of our customers.