Our Business Operations

Leveraged Finance

Amid the accelerating trend towards corporate structural transformation, needs for M&A are expanding, from major corporations to mid-sized companies and SMEs. The Bank works to arrange/provide LBO loans, propose syndicated loans and build a high-quality portfolio through private equity investments.
For overseas corporate loans, Aozora strives to ensure a flexible portfolio management aimed at risk diversification and maintaining/improving credit quality through coordinated monitoring by the Head Office and New York and London-based subsidiaries.

Real Estate Finance

In our real estate finance business, we intend to actively incorporate sustainable finance, which is increasingly gaining momentum in the real estate industry, in addition to real estate non-recourse loans and corporate loans. For equity finance, we will continue to make value-added proposals by leveraging our knowledge and insights of the real estate sector while selectively making equity investments with a primary focus on engagement as well as more typical equity investments in real estate.
In addition, we offer financial products in tie-ups with Aozora Real Estate Investment Advisors, B Spark (a DX support company) and Vietnam-based Orient Commercial Joint Stock Bank (OCB) as well as wide-ranging financial services by leveraging the Aozora Group’s wealth of expertise in the real estate area, such as business matching designed to meet diverse real estate needs, including more boutique real estate products.

Equity Investments

Aozora intends to promote equity investments with a primary focus on engagement, an approach where we purchase our customers’ equities and work closely with them towards their growth by offering advice through active involvement in their management while facilitating dialogue focused on gaining a deeper understanding of their business.
In our investments and loans to venture companies, we will provide assistance that contributes to the mid- to long-term enhancement of their corporate value mainly by providing venture debt funds available through Aozora’s Venture Ecosystem Support Framework, our venture company support service that utilizes Aozora’s network.

Envitonmental Finance

Aozora flexibly responds to emerging needs, including ongoing large-scale solar power development projects and transition finance towards decarbonization, and serves the needs of local communities through financing arrangements and syndicated loans in collaboration mainly with regional financial institutions Through financing for renewable energy projects, which are growing in the U.S. and European markets ahead of other regions, we aim to explore new innovative areas by leveraging our expertise domestically and overseas and support the development of advanced energy-related projects in Japan as well as throughout Asia.

Recovery Finance

By leveraging our over-20-year experience in recovery finance led by Aozora Loan Services, we remain committed to contributing to regional communities as a leading domestic player by responding to the business recovery financing needs of regional customers and providing recovery finance for assets adversely impacted by the COVID-19 pandemic as well as DIP finance.

M&A Advisory

ABN Advisors is further strengthening its framework specializing in business succession-related M&A advisory services in response to business succession needs that are growing amid the recent trend towards corporate structural transformation. ABN Advisors will provide a wide range of solutions in collaboration with the Retail Banking Group while leveraging our network of regional financial institutions.
For cross-border M&A projects, we intend to focus on Vietnam-related transactions with high M&A demand from Japanese companies in collaboration with OCB, our local business and capital partner.

Network of Regional Financial Institutions

Our Regional Finance Partner Bank Task Force is now in place to utilize our nationwide network of regional financial institutions that has been in place for over 60 years as well as our wide-ranging financial capabilities across the Aozora Group developed over time. We aim to flexibly and quickly respond to the diverse needs of our regional financial institution customers. These needs may require providing business recovery/succession support, securities investment and risk management support, retail business support regarding Aozora Investment Management’s publicly offered investment trusts sold through regional financial institutions as well as a broad range of services tailored to regional companies by promoting collaboration with our business groups and group companies.

Retail Customers

We provide solutions to diverse customer needs, including business succession support for SMEs and small business owners as well as real estate investment support for affluent individuals, by leveraging the strengths of our group companies and other corporate banking groups through the retail customer base as a common platform across the Aozora Group. Aozora provides comprehensive financial services through specialized consulting at traditional branches located across Japan as well as the highly convenient BANKTM service. We also actively offer sales of financial products with the ultimate aim of increasing investment trust AUM balances.

Aozora Bank understands that the advancement of digital technologies and progress of digital transformation (DX) are irreversible trends that will create new business opportunities and, at the same time, have a wide-ranging impact on a broad array of corporate and personal activities, including the loss of existing business areas as well as the change of traditional business practices and lifestyles.
The Aozora Group supports its customers’ DX initiatives through services backed by its network of IT companies as well as B Spark Inc.’s and GMO Aozora Net Bank’s digital technologies, and also strives to further improve customer convenience mainly in the retail banking business by utilizing digital technologies.
The Bank’s DX initiatives include further digital talents development and embarking on digital marketing and other business areas.

Responding to Customers’ DX Needs – B Spark Inc.

The Bank strives to meet the digitalization needs of customers through B Spark Inc., which is a DX support company established as a joint venture with B Dash Ventures Inc., a major independent IT venture capital firm.
B Spark Inc. engages in cutting-edge DX support services and solutions by matching regional needs for digitalization with venture firms. It focuses particularly on providing DX services designed to streamline the operations of the real estate, construction and other sectors with high regional needs.

GMO Aozora Net Bank Initiatives

GMO Aozora Net Bank (“GANB”) was launched in July 2018 as an Internet Bank that leverages the strengths of both the Aozora Group and GMO Internet Group. Under its corporate vision of “All for our customers. Strive to be the No. 1 Tech Bank”, GANB aims to establish itself as a progressive bank that defies easy categorization through its expertise
in “Banking and IT” while combining its technology, distinctive perspective, broad range of tools, knowledge and specialized network. As a bank with a next-generation tech-first approach, GANB has been developing and offering a range of services designed to support customers’ growth through providing the five values of “safety”, “speed”, “price competitiveness”, “convenience”, and “new experience”.
In July 2021, GANB announced its mid- to long-term strategies that focus on the three objectives of “No. 1 Bank among Small Businesses and Start-ups”, “No. 1 Embedded Finance Services” and “No. 1 Tech-first Banking Services” and continues to provide innovative services for corporate customers through leveraging in-house systems development backed by its technological capabilities.

Digital Talents Development / Framework Enhancement

In FY2021, the Bank launched its Digital Talents Development Program for all employees.
A range of training is available to support their proactive engagement in DX. This program also includes higher levels of training courses, which have been attended by many employees to date.
In FY2022, the Bank provides category-specific training to Digital Business Strategist, Service Designer (UI/UX) and Data Scientist.