Nomura : Contributes to Japan’s First Bond Offering Using Blockchain Technology(PDF 47KB)

News Release

Nomura Contributes to Japan's First Bond Offering Using Blockchain

Technology

Tokyo, March 30, 2020-Nomura Securities Co., Ltd., a wholly owned subsidiary of Nomura Holdings, Inc. (the "Company"), and BOOSTRY Co., Ltd., a joint venture between the Company and Nomura Research Institute, Ltd. ("NRI"), today announced that they have provided technical infrastructure and other support to NRI on its digital asset bond and digital bond offering. This is the first bond offering using blockchain technology by a Japanese issuer.

The digital asset bond was offered directly to investors by NRI, while Nomura Securities served as underwriter for the digital bond. On both bonds, Nomura Trust and Banking Co., Ltd. acted as fiscal agent, while BOOSTRY provided its blockchain platform "ibet"1 and acted as register agent. Payment and issuance of the bonds were completed today.

The bond register for both bonds is managed using the ibet platform. This enables issuers to keep track of bondholders, which is difficult with traditional bonds. The digital asset bond provides digital assets to investors instead of interest payments (the bond offers points which can be used in cafes). NRI solicited investors for the digital asset bond using a smartphone app that connects to ibet.

Framework for digital asset bond and digital bond

ibet

(Blockchain platform)

Nomura Trust and

NRI

BOOSTRY

Banking

(Issuer)

(Bond register agent)

(Fiscal agent)

Digital asset bond

Digital bond

Points + Principal

Nomura Securities

(Underwriter)

Investors

Coupon + Principal

Use points

Investors

Cafe

1 Developed by BOOSTRY (https://boostry.co.jp/), ibet (https://ibet.jp/) is a blockchain platform used to issue and manage rights (securities, memberships, vouchers, etc.). The platform is open source and is intended for companies interested in the digital asset business.

Through the issuance, Nomura Group and NRI aim to contribute to the development of Japan's capital markets in order to create value and help resolve social issues. In addition to providing funding through the capital markets, the digital asset bond represents a new form of collaboration between marketing and finance, which helps in expanding the functions of the capital markets. The digital bond aims to contribute to more agile fundraising through new financial services, including digital currencies.

By underwriting bonds that leverage new forms of technology, Nomura Securities aims to help issuers diversify their funding methods and realize more stable funding. Nomura Securities also seeks to contribute to the development of the global capital markets by offering new investment opportunities to investors.

Nomura Group has established a dedicated research group2 as part of its ongoing efforts to respond to the diversification of financial transactions due to advances in information communication technologies. The offering contributes to the development of new services in the capital markets. By collaborating with various partners and taking a wide range of approaches, Nomura Group will work to ensure the rapid penetration of this service.

1.	Digital asset bond
	Issuer	Nomura Research Institute, Ltd.
	Issue size	25 million	yen
	Tenor	3 months
	Coupon	0.5974%	(Digital assets (cafe points) are basically
	granted)
	Transaction type	Direct offering without underwriter
	Fiscal agent	The Nomura Trust and Banking Co., Ltd.
	Bond register agent	BOOSTRY Co., Ltd.
	Date of payment and issuance	March 30, 2020
	Others	Uses blockchain technology for management of bond
	register
2.	Digital bond
	Issuer	Nomura Research Institute, Ltd.
	Issue size	5 million	yen
	Tenor	3 months
	Coupon	0.5974%
	Underwriter	Nomura Securities Co., Ltd.
	Fiscal agent	The Nomura Trust and Banking Co., Ltd.
	Bond register agent	BOOSTRY Co., Ltd.
	Date of payment and issuance	March 30, 2020
	Others	Uses blockchain technology for management of bond
	register

• Please refer to the news release entitled "Nomura Establishes Research Group on Use of Blockchain Technology in Financial Markets" issued on March 30,2020.https://www.nomuraholdings.com/news/nr/etc/20200330/nicmr20200330.pdf

ends

Nomura

Nomura is an Asia-headquartered financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its four business divisions: Retail, Asset Management, Wholesale (Global Markets and Investment Banking), and Merchant Banking. Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.