Brussels/Tokyo, 17 December 2020  – Euroclear Bank, the Brussels based international central securities depository (ICSD), in collaboration with the Japanese capital market have launched a new asset class, Origami bonds.

Origami bonds are foreign currency denominated Japanese local bonds issued by domestic market participants and then distributed and settled in real time multi-currency delivery vs. payment (DVP) within Euroclear Bank. With these Origami bonds, Japanese issuers are now able to gain direct exposure to a wider foreign investor base, reaping the benefits of a greater liquidity pool and improved cost efficiencies.

Since the launch, three issuances have already occurred through Euroclear Bank. Japan’s seventh largest city, Kobe was the first issuer to utilise the Origami bond structure; next was Japan’s second largest city Yokohama and the third issuance was made by the Shizuoka Prefecture. Goldman Sachs served as lead manager for Kobe and Yokohama City, and Nomura for the Shizuoka Prefecture.  

Toshinori Akaeda, Manager, Finance Bureau, Kobe City commented: “We introduced the first-ever Euroclear settled foreign currency domestic bond, in response to a growing need for settlement aligned to global standards. We succeeded in issuing the largest foreign currency domestic bond at the time, with participation of several new investors. The introduction of the Origami bond  contributed to the expansion of the investor base of Kobe City’s bonds as well as the diversification of its funding sources. Furthermore, we see the new investment option increasing the potential of Japan’s domestic bond primary market.”

Valerie Urbain, CEO, Euroclear Bank, added: “We are very excited by the level of interest that we have seen in the Origami bond roll out. Our extensive experience in  Japan has deepened our understanding of ways to deliver new and innovative services to benefit the market. In our role as a financial market infrastructure, we see great opportunities to expand and improve our global service offering by developing  value-added solutions for connecting  issuers and investors efficiently and effectively.”


Note to editors

Euroclear Bank provides settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds. Serving major financial institutions located in more than 90 countries, Euroclear Bank, based in Brussels, is part of the Euroclear group. Euroclear Bank is rated AA+ by Fitch Ratings and AA by Standard & Poor’s.

As well as Euroclear Bank, the Euroclear group includes Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 837 trillion in securities transactions in 2019, representing 239 million domestic and cross-border transactions and held an average of EUR 30.1 trillion in assets for clients.

For more information about Euroclear, please visit www.euroclear.com.

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"Our extensive experience in Japan has deepened our understanding of ways to deliver new and innovative services to benefit the market."

Valérie Urbain, CEO, Euroclear Bank


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