[NEWS] Okasan Securities Group issues public ST bonds to commemorate its 100th anniversary; Mitsubishi UFJ Trust and Banking Corporation and others collaborate

Okasan Securities Group announced that it will issue publicly offered ST (security token) bonds for domestic individuals in collaboration with Okasan Securities, Mizuho Securities, Mizuho Bank, and Mitsubishi UFJ Trust and Banking Corporation. This initiative is positioned as the first step in the security token business and will utilize Progma, a digital asset issuance and management platform developed and operated by Progmat.

The issuance amount will be 2 billion yen, the largest ever, and the "Okasan Securities Group 100th Anniversary ST Bonds" will be issued. The bonds will be issued on December 20th and have a redemption period of one year. The bonds will be used for Okasan Securities' working capital.

Okasan Securities Group celebrated its 100th anniversary on April 4, 2023. With the mission of "contributing to the lives of our customers as financial professionals," the group has aimed to contribute to the development of the financial market.

Okasan Securities Group has long been working to build a standard framework for the solicitation and issuance of ST bonds under its vision of creating new value in the capital market through collaboration with collaborating companies. As a result, the first step under this framework will be the issuance of ST bonds to commemorate the 100th anniversary of the Okasan Securities Group.

Mizuho Securities, which will collaborate with Okasan Securities, launched Japan's first public offering of real estate ST (exempt electronic record transfer rights) in March of this year. In addition, the bank has newly started handling "securities display rights (tokenized securities)".

Mizuho Bank is a top bank in the public bond trustee business and has been operating as a bond administrator and financial agent business for many years. In collaboration with collaborating companies, it is leading the development of bond management and fund settlement practices for ST bonds.

Mitsubishi UFJ Trust and Banking will manage the bond register and custody of the private keys using Progmat, which is licensed by Progmat. This is the first time that Progmat has been used to manage public ST bonds. There have been 17 public offerings of ST bonds using Progmat, and the balance of assets managed by the register is approximately 88.2 billion yen.

Details of public ST bonds

The "Okasan Securities Group 100th Anniversary ST Bond" is the first public ST to use Progmat. Unlike the conventional scheme that uses the Securities Depository Center, Progmat will be used to manage the bond register records. The transfer of rights from issuance to redemption, as well as rights holder information, will be managed by blockchain.

The issue is "Okasan Securities Group Co., Ltd. 1st Unsecured Security Token Bond (with limited pari passu clause between corporate bonds and transfer restrictions)". It is nicknamed "Okasan Securities Group 100th Anniversary ST Bond". The amount to be issued is yet to be determined, but it will be capped at 2 billion yen. The application unit is 1 million yen. The planned issue date is December 20th, and the planned redemption date is December 20th, 2024.

The roles of the collaborating companies are as follows: Okasan Securities Group will issue the bond, Okasan Securities and Mizuho Securities will underwrite and sell the bond, and Mizuho Bank will manage the bond and handle issuance, interest payment, and redemption. Mitsubishi UFJ Trust and Banking Corporation will manage the bond ledger and custody using Progma, and Progma will issue digital assets and provide licenses for the management platform Progma.

▶︎The scheme of this initiative and the roles of each company (quoted from the announcement)

Reference:Announcement
Image: Shutterstock

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