Credit Trading & Business Restructuring Financing

For more than two decades, SBI Shinsei Bank has been carrying out Credit Trading which is a balance sheet restructuring solution for corporate customers through we make a purchase of the customer's debt and monetary claims upon their request. Our investments (purchasing) in liabilities include not only monetary claims such as loans held by financial institutions (banks and non-banks), but also a wide range of claims held by business corporations. In addition, we are engaged in financing related to business revitalization based on the business revitalization experience it has cultivated through Credit Trading. Although it is necessary to verify the probability of repayment with a certain level of conservation, we help companies rebuild by meeting the financing needs of companies that are facing financial difficulties.

Investment Targets

• Monetary claims (e.g. bank borrowing, non-bank financial institutions borrowing, borrowing by a subsidiary from its parent company, etc.)
• Account receivables/long-term receivables/account receivables from construction contracts/etc.
• Tenant security deposit refund claims (after vacating)
• Right to indemnity after fulfillment of guarantee obligations

SBI Shinsei Bank Group maintains close relationships with financial institutions across Japan as well as wide-ranging business relationships with major industrial companies. We have a well-established track record in the handling of Credit Trading transactions. Our personnel with a large amount of experience in those fields carry out the Credit Trading business to offer our customers the most effective solutions available.

Examples of Solutions

Through the purchase of receivables, we can help you solve the following issues.

• Financial restructuring (re-scheduling, debt equity swaps (DES), partial debt forgiveness)
• Separating unprofitable businesses and subsidiaries (utilizing M&A and corporate splits)
• The smooth implementation of restructuring (soft landing)
• Shortening of corporate rehabilitation proceedings (such as early collective disposal)
• Fundraising support through asset sales
• Dissolution of the relationships with past business related
• Status restoration of normal transactions with banks (credit creation support)

We help revitalize your business and raise funds that are not easy with the following financing.

• Provision of business funds to companies undergoing restructuring including debtor in possession (DIP) finance
• Financing for business restructuring by listed companies
• Financing that focuses on asset value, such as real estate and securities (cases that are difficult to deal with general bank loans, such as second-order security interests, real estate M&A, real estate project funds with exceptional content, and non-performing loan investments secured by real estate, can also be considered)
• Temporary Demand for Funds Prior to Planned Bank Procurement
• Relatively small LBO funds

We perform several integrated functions, including the identification and evaluation of projects, negotiations with customers, preparation of contract documents, administrative operations for assigning debts, and post deal administration. Furthermore, we offer diversified solutions through the provision of comprehensive services include loans and M&A, that meet the various needs of our customers such as corporate rehabilitation, made possible collaboration within the SBI Shinsei Bank Group.