We make investments in loans to ailing companies and to corporations facing the challenges of a rapidly changing operating environment, and provide recovery finance to companies under rehabilitation, AOZORA Loan Services Co., Ltd., our loan servicer subsidiary purchases non-performing loans and provides corporate advisory services, such as developing business recovery plan proposals.
Providing a Diverse Range of Financial Products
Debentures and Derivative Products
Together with the issuance of debentures, we provide other shorter-term financial products such as large-lot time deposits. The Bank also offers derivative-embedded investment products to our financial institution customers, which include deposits and loans to the Bank from financial institutions, as well as loans to corporate customers.
Loan-Related Products
Using our presence in the syndicated loan market, we offer our financial institution customers participation in loan syndicates to grow and diversify their own loan portfolios. We are active in financing to J-REIT and structured financing transactions, as well as in the provision of traditional corporate loans to our financial institution clients. We also offer credit-linked loans and asset-backed loans.
Securitized Products
The Bank provides investment products by securitizing various types of monetary claims, and structuring them into asset-backed loans, beneficiaries' interest held in trust, etc., depending on the preferences of our customers.
Investment Trusts
We offer a wide array of fund products, focusing on private placement investment funds such as Japanese equity funds (including active, lond-short and market neutral strategies), and global bond funds.
Financial Instruments Intermediary Business
Through our securities subsidiary, Aozora Securities Co., Ltd., we offer our customers a variety of Euroyen structured notes (interest rate, foreign currency, equity credit-linked, etc.).
Providing Solutions for Management Issues
Corporate Revitalization
The Bank provides a variety of services aimed at business revitalization and supporting management improvement for the clients of our regional financial institution customers.
We provide a range of practical advisory for corporate clients of regional financial institutions such as the formulation of business recovery plans, extension of marketing channels, enhancement of supply chains, disposal of properties, rescheduling of existing debt, additional aid fund packages, and development of methods to promote smooth financing, while maintaining the institutions' position as a bank creditor.
Financial Analysis
The Bank conducts ongoing analyses of the financial statements of our regional financial institution customers. We respond to management issues in areas such as finance, ALM, securities investments, risk management and system requirements by exchanging views on various regulations such as changes in financial reporting standards and BIS regulatory reform.
Making Collaborative Proposals to Clients' Corporate Customers
Joint Proposal of Derivative Products
We support our financial institution customers through the provision of swaps or options for their corporate clients and other proprietary solutions as they develop derivative-embedded time deposits for their clients. We are also open to discussions regarding deposit agency businesses, in which regional financial institution customers act as intermediaries for applications of Aozora's derivative-embedded deposits.
Joint Proposal of Other Types of Finance
In cooperation with regional financial institution customers, Aozora Bank supports the finance side of hospital operations, which are crucial to regional health, by conducting situational analyses of medical institutions, assisting in the creation of business plans, and acting as a funding arranger. The Bank offers joint proposals for debtor-in possession (DIP) finance and asset-based lending (ABL), to meet the financing needs of the clients of our regional financial institution customers who are en route to recover. We are also active in offering proposals for jointly originated syndicated loan transactions.
