Natixis Japan Securities has entered Japan’s uridashi market with its first structured note linked to the Nikkei 225 index. The three-year yen-denominated notes were priced on February 13 and were filed with the director general of the Kanto Local Finance Bureau on February 26.
They were launched as part of bank’s JPY3.114bn (USD$25.7m) debt issuance programme and will pay 2.55％ pa. The Nikkei 225-linked notes will be distributed by Daiwa Securities to Japanese investors during the offering period which runs until March 12.
The launch of the uridashi notes is part of a strategic decision to re-develop Natixis’s platform in Japan, including the funding of the group via samurai and uridashi bond issues, said Laurent Depus, senior country manager, Japan and president of Natixis Japan Securities.
“This has two benefits: for investors, there is yield and duration, and for the group there is diversification not only in terms of investors but also currencies,” said Depus. “Natixis's plans in Japan also includes the expansion of an existing equity derivatives platform, which will leverage the bank’s structured products and financial engineering capabilities."
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Summary terms of the Notes: |
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Issuer: |
Natixis Programme Debt Issuance Programme |
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Currency: |
Japanese yen (JPY) |
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Issue size: |
JPY3.114billion |
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Tenor: |
3 years |
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Coupon: |
2.55％ per annum |
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Selling Unit: |
JPY2,000,000 (JPY1,000,000 as minimum) |
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Offering Period: |
March 3, 2015 - March 12, 2015 |
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Closing Date: |
March 16, 2015 |
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Maturity Date: |
March 16, 2018 |
"It's very important to have visibility in the uridashi market as a way of diversifying the bank’s funding and leveraging its equity derivatives platform and from a local perspective as it provides us with the ability to show our name to investors and financial institutions, and build our local reputation,” said Depus.
The bank, said Depus, will continue to expand the uridashi range of structured notes and respond to investors' needs as it builds a track record in the market. Natixis's uridashi range will be targeted initially at institutional investors and the extended to retail.
Depus joined Natixis in November 2014 to oversee the bank’s operations in Japan as well as its representative office in Korea, reporting to François Riahi, chief executive officer Asia Pacific. Depus' appointment followed that of Nicolas Reille who joined Natixis as head of solutions sales in Hong Kong in September 2014 to spearhead the bank's structured solutions sales efforts in the region, reporting to Eric Le Brusq, global head of equity derivatives sales at Natixis in London. Reille was the latest in a series of senior hires at the bank in 2014 aimed at rebuilding its equity derivatives/structured products.
Natixis has been the derivatives counterparty in 80 uridashi products in Japan since 2008 of which 76 are still live products including 59 notes marketed by Tokai, 11 from Mizuho, and two apiece from Daiwa Securities, Shinsei Securities, and SMBC Nikko Securities.
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