BPCE’s JPY58.1 billion ($500 million)
quadruple-tranche senior-preferred (SP) offering to Japanese
institutional investors has successfully launched, with
specific disclosure needed for the unique use of proceeds.
The June 23 transaction, from France’s second
largest bank, marks the first time any financial institution
has issued a yen-denominated social-impact bond, and the second
senior preferred issuance by the Paris-based lender.
But due to the deal’s unique structure, with
the proceeds going towards financing the issuer’s
clients rather than projects, the country’s
Financial Services Agency (FSA) imposed a standalone disclosure
"We had a specific use of proceeds section [in the
prospectus] to inform the investors of details on how the
proceeds are used," said
Ryu Umezu, partner at Anderson Mori & Tomotsune in
Tokyo. The proceeds for other types of samurai bonds has
traditionally been earmarked for general corporate financing
purposes, and is therefore much simpler.