Credit trading helps our corporate customers reform their balance sheet. This is achieved through Shinsei Bank’s investment in debts (purchase of debts) owed by and to customers (e.g. borrowing) or monetary claims held by customers. Our investment targets are wide-ranging. We invest in (purchase) not only monetary claims held by financial institutions (including banks and non-bank financial institutions) but also claims held by corporate customers. We do not view the credit trading business simply as a purchase of assets (monetary claims), but as a transaction to create higher added value. From this viewpoint, we are offering the best solution through our credit trading business to entities (corporations and proprietors) facing problems, which have entered into transactions with Shinsei Bank through monetary claims purchases. Shinsei Bank will prepare a custom-made scheme to meet the needs of each customer, for example when a customer is having difficulty and traditional methods are not working and the customer needs to explore a new avenue such as through a drastic restructuring.
【Investment Targets】
- Loan receivables (bank borrowing, borrowing from non-bank financial institutions, borrowing of a subsidiary from its parent company and so forth)
- Housing loan receivables
- Lease receivables / Installment accounts receivables
- Account receivables / long-term receivables / account receivables from construction contracts and so forth
- Right to claim security deposit return (after withdrawal)
- Right to indemnity after fulfillment of guarantee obligations
Shinsei Bank, as a financial institution having close relationships with financial institutions across the nation and wide-ranging business relationships with major industrial companies, and also as a financial institution holding a neutral position not associated with a specific group, has a track record of handling credit trading transactions. Making the most of their position in the market, the Credit Trading Group, staffed with experienced personnel with accumulated leading-edge know-how, can offer our customers the most effective solutions.
【Examples of Solutions】
- Financial restructuring (re-scheduling, DES, partial debt forgiveness)
- Spin off of unprofitable business / unprofitable subsidiary (use of M&A and corporate split)
- Smooth restructuring implementation (soft landing)
- Shorten corporate rehabilitation proceedings (such as early collective disposal)
- Support for fundraising through sales of assets
- Removal of bonds associated with the past business relationship
- Return to normal transactions with banks (support for credit creation)
The Credit Trading Group performs integrated functions, including the identification and evaluation of deals, negotiations with your customers, preparation of contract documents, administrative operations for assigning debts, and post deal administration. Shinsei Servicing Company – a Shinsei Bank group servicer which was assigned high ratings by Fitch Ratings and Standard & Poor’s – conducts credit administration and collection activities. We are, therefore, in a position to offer diversified solutions to meet the various needs of our customers through, for example, corporate rehabilitation as well as comprehensive services generated from the cooperative system in the Shinsei Bank group, such as loans and M&A.
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