Exhibit 1
Development Bank of Japan
This description of the Development Bank of Japan is dated September 29, 2008 and appears as Exhibit 1 to its Annual Report on Form 18-K to the U.S. Securities and Exchange Commission.
THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THIS DOCUMENT (OTHERWISE THAN AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATION STATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933) DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF DEVELOPMENT BANK OF JAPAN.
TABLE OF CONTENTS
FURTHER INFORMATION
This document appears as an exhibit to the Annual Report of Development Bank of Japan filed with the U.S. Securities and Exchange Commission (the “Commission”) on Form 18-K. Additional information with respect to Development Bank of Japan is available in such Annual Report, in the other exhibits to such Annual Report and in amendments thereto. Such Annual Report, exhibits and amendments may be inspected and copied at the public reference facilities maintained by the Commission at: 100 F Street, N.E., Washington, D.C. 20549. Information regarding the operations of the public reference room can be obtained by calling the Commission at 1-800-SEC-0330. Copies of such documents may also be obtained from Development Bank of Japan by telephoning 813-3244-1820. The Annual Report and its exhibits and amendments are also available through the Commission’s Internet website at http://www.sec.gov.
In this document all amounts are expressed in Japanese Yen (“¥” or “yen”), except as otherwise specified. The spot buying rate quoted on the Tokyo Foreign Exchange Market on September 26, 2008, as reported by The Bank of Japan at 5:00 p.m., Tokyo time, was 105.35=$1.00, and the noon buying rate on September 26, 2008 for cable transfers in New York City payable in yen, as reported by the Federal Reserve Bank of New York, was 106.06=$1.00.
References to fiscal years of Development Bank of Japan are to the 12-month periods commencing on April 1 of the year indicated. References to the fiscal year ending March 31, 2009 refer to (1) the six-month fiscal period ending September 30, 2008 of Development Bank of Japan, which is its last fiscal period, and (2) the six-month fiscal period ending March 31, 2009 of the Development Bank of Japan Inc. (the successor to Development Bank of Japan), which will be its first fiscal period.
Unless otherwise indicated, all amounts are presented on a basis consistent with the statutory financial statements of Development Bank of Japan, which are prepared in accordance with the Development Bank of Japan Law (the “DBJ Law”) and the regulations thereunder and in accordance with accounting principles generally applied to special public corporations in Japan.
In this document where information is presented in thousands, millions or billions of yen or thousands, millions or billions of dollars, amounts of less than one thousand, one million or one billion, as the case may be, have been truncated unless otherwise specified. All percentages have been rounded to the nearest percent, one-tenth of one percent or one-hundredth of one percent, as the case may be, except as otherwise indicated. In some cases, figures presented in tables in this document may not add up due to such truncating or rounding.
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DEVELOPMENT BANK OF JAPAN
Development Bank of Japan (“DBJ”) was established on October 1, 1999 as a governmental financial institution. DBJ’s name and basic mission are provided by the Development Bank of Japan Law (the “DBJ Law”). DBJ is the result of a merger between The Japan Development Bank (“JDB”) and the Hokkaido-Tohoku Development Finance Public Corporation (“HTDF”).
The DBJ Law provides that DBJ’s purpose is to promote:
| | • | | the energy and sustainable development of Japan’s economy and society; |
| | • | | the realization of an affluent national life; and |
| | • | | the independent development of local economies. |
To promote these objectives, DBJ provides long-term financing and related services to qualified projects as a supplement and inducement to the lending and other services provided by commercial financial institutions.
DBJ’s capital is wholly owned by the Japanese Government, and DBJ is subject to government control and supervision in conducting its operations. The Minister of Finance has supervisory powers over DBJ and determines, with the approval of the Diet, the amount of government funds to be loaned to DBJ for its lending. DBJ’s annual budget of revenues and expenditures is included in the Government Agencies Budget drawn up by the Minister of Finance, which is subject to approval by the Diet. The Governor and the Auditors of DBJ are appointed by the Minister of Finance.
CAPITALIZATION
The capitalization of DBJ as of March 31, 2008 was as follows:
| | | |
| | | (in millions) |
Long-term borrowings: | | | |
Long-term borrowings from government | | ¥ | 6,820,444 |
Funds entrusted | | | 12,102 |
Bonds and notes | | | 3,160,003 |
Long-term borrowings from private financial institutions | | | 100,000 |
| | | |
Total long-term borrowings(1) | | | 10,092,549 |
Capital and statutory reserve: | | | |
Capital | | | 1,272,286 |
Statutory reserve (excluding appropriation of net earnings as a statutory reserve for the fiscal year ended March 31, 2008) | | | 1,113,186 |
Appropriation of net earnings as a statutory reserve for the fiscal year ended March 31, 2008 | | | 35,756 |
| | | |
Total capital and statutory reserve | | | 2,421,229 |
Total capitalization | | ¥ | 12,513,778 |
| | | |
| (1) | For additional information relating to long-term borrowings, see “Balance Sheets” and “Notes to Financial Statements”. |
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STATEMENTS OF INCOME OF DEVELOPMENT BANK OF JAPAN
See “Non-consolidated Statements of Income” set forth on page 20 and “Notes to Non-consolidated Financial Statements” set forth on pages 23 to 29 herein.
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BUSINESS
Purpose and Authority
Under the DBJ Law, DBJ’s principal authority is to provide long-term financing and related services to qualified projects as a supplement and inducement to the lending and other services provided by commercial financial institutions. The DBJ Law specifies that all loans and guarantees extended by DBJ and all debentures subscribed to by DBJ shall have an original maturity of not less than one year and that DBJ shall not compete with commercial financial institutions in conducting its business.
The total outstanding amount DBJ can lend, guarantee and invest is limited by the DBJ Law to the sum of its borrowing authority plus its capital and statutory reserve. Its authority to borrow is limited to 14 times its capital and statutory reserve pursuant to Article 44 of the DBJ Law. As of March 31, 2008, total borrowings were ¥10,092 billion, representing 30.2% of DBJ’s borrowing authority on that date.
Pursuant to the DBJ Law, JDB and HTDF were dissolved upon the establishment of DBJ on October 1, 1999. Also pursuant to the DBJ Law, all of the rights and obligations of JDB and HTDF were assigned to and assumed by DBJ.
The Japan Development Bank
JDB was established in 1951 as a governmental financial institution. JDB’s principal authority was to make loans for the development of industry, the economy and society in general. Most of its loans were made to finance plant and equipment (including aircraft, ships and rolling stock), the reclamation of land, and urban redevelopment. During the last ten years of its operation, JDB’s authority was extended to make equity investments in designated fields; to enlarge the research and development loan program; to make loans to promote the commencement of specified businesses; and to contribute to improving the nation’s social and economic infrastructure through its low-interest loan program for constructing facilities. JDB was also authorized to guarantee obligations for projects it could itself finance. DBJ assumed these operations on October 1, 1999.
Hokkaido-Tohoku Development Finance Public Corporation
HTDF was established in 1956 as a governmental financial institution. HTDF’s principal authority was to provide long-term funds to projects in the Hokkaido and Tohoku regions of Japan in order to promote industrial development in those regions. HTDF invested in, and provided finance and loan guarantees to corporations whose operations were vital to industrial development in those regions, enabling such corporations to purchase capital equipment and access long-term operating funds. HTDF also provided various types of information on local industries and supported regional development project start-ups. DBJ assumed these operations on October 1, 1999.
Other Functions
In addition to the operations of JDB and HTDF, on October 1, 1999 DBJ also assumed the finance functions formerly conducted by the Japan Regional Development Corporation and the Japan Environment Corporation, both governmental institutions.
Government Control and Supervision
DBJ is under Japanese Government control and supervision in conducting its operations. The Minister of Finance draws up the government’s Fiscal Investment and Loan Program (“zaito”) each year which, subject to approval by the Diet, determines the allocation of funds to institutions like DBJ that implement government policies. The allocations are included in the Government Special Accounts Budget and DBJ’s budget of revenues and expenditures is included in the Government Agencies Budget for that fiscal year. DBJ’s accounts are audited by DBJ’s Auditors and are submitted to the Diet after examination by the Board of Audit, an independent body created under the Constitution of Japan.
The Minister of Finance has supervisory powers with regard to DBJ and may require it to make reports as to its operations or examine its books and records whenever he or she deems it necessary. On the basis of any such report or examination, the Minister may issue such orders to DBJ concerning its operations as he or she deems necessary for enforcement of the DBJ Law.
Until the year ended March 31, 2001, DBJ’s lending operations were financed in part by funds from the Fiscal Investment and Loan Program of the Japanese Government (“zaito”) and issuances of DBJ’s bonds explicitly guaranteed by the Japanese Government under the zaito program. Effective April 1, 2001, the zaito program was fundamentally changed from a system in which funds from the government’s Postal Savings and Pension reserves were deposited with the zaito program on a compulsory basis for use by the relevant agencies, including DBJ, to a system in which the government generally raises from capital markets only the amount of funds necessary for these agencies’ projects. As part of the reform, these agencies, including DBJ, are also authorized to raise funds from the capital markets without a guarantee from the government. For the fiscal year ended March 31, 2008, DBJ was authorized to issue up to ¥290 billion in aggregate principal amount of bonds without a guarantee from the government. For the fiscal year ending March 31, 2009, DBJ has been, and its successor will be, authorized to issue up to ¥320 billion in aggregate principal amount of bonds without a guarantee from the government.
As indicated under “Management”, the Governor and the Auditors of DBJ are appointed by the Minister of Finance.
Recent Developments Regarding Special Public Institutions
On June 6, 2007, the law to privatize DBJ (the “New DBJ Law”) was passed by the Diet.
The New DBJ law contemplates the establishment, in October 2008, of the Development Bank of Japan Inc., a joint stock corporation (“New DBJ”), which will succeed to the business of DBJ. Under the New DBJ Law, New DBJ will initially be wholly owned by the Japanese Government. The New DBJ Law provides that, within a time period that is targeted to last approximately five to seven years, the Japanese Government will dispose of all of the common stock of New DBJ that it will initially own (the “complete privatization”). Promptly after the complete privatization, the Japanese Government will take steps to abolish the New DBJ Law.
With respect to the transition period leading to the complete privatization, the New DBJ Law provides the following:
| | • | | When New DBJ is established in October 2008, DBJ will contribute its assets and liabilities to New DBJ in exchange for shares of New DBJ’s common stock, and thereafter, upon transferring such shares to the Japanese Government, DBJ will be dissolved. The DBJ Law, which currently governs DBJ, will be abolished. |
| | • | | Under the New DBJ Law, the activities of New DBJ will be primarily those of DBJ (making equity investments in, and providing loans and guarantees to, qualified projects; and making borrowings from the government and issuing government-guaranteed and non-guaranteed bonds to finance its operations). In addition, New DBJ will be authorized to accept negotiable deposits and issue bank debentures to investors. The New DBJ Law will also enable New DBJ to utilize new financing methods, such as debtor in possession finance and project finance, in its operations. |
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| | • | | Supervision of New DBJ by the Japanese Government will be limited to the requisite minimum, taking into account as references the laws governing other companies wholly owned by the Japanese Government and finance-related laws and regulations. Involvement of the Japanese Government in New DBJ’s affairs will be reduced as compared with its current involvement in DBJ, bearing in mind such matters as the need to secure an equal footing between New DBJ and private financial institutions and the need to secure public benefit with respect to fiscal measures. |
| | • | | In order to make a smooth transition from the current financing structure (of DBJ) that relies primarily on financing backed by government credit to a stable financing structure without such backing, during the transition period New DBJ will be permitted to make borrowings from the Japanese Government and to issue government-guaranteed bonds. |
| | • | | During the preparation period leading to the establishment of New DBJ in October 2008, in addition to obtaining borrowings from the Japanese Government and issuing government-guaranteed bonds, DBJ will be permitted to obtain long-term borrowings from the private financial institutions. |
| | • | | With respect to various laws that currently set forth mechanisms for utilizing financing from DBJ, by October 2008, the Japanese Government will consider the manner in which an equal footing with private financial institutions that might provide such financing will be secured and take appropriate measures. |
| | • | | With respect to DBJ’s government-guaranteed bonds that are currently outstanding, as well as government-guaranteed bonds that DBJ may issue hereafter and before its abolishment as described above, the Japanese Government’s guarantee will continue unchanged after DBJ’s obligations and liabilities thereunder are transferred to New DBJ. |
Operations
Loan and Investment Operations
The following tables set forth for the fiscal year ended March 31, 2008, the percentage of the total amounts of loans and investments outstanding and new loans and investments made by DBJ by project area. During the fiscal year ended March 31, 2008, DBJ made loans and investments in the aggregate amount of ¥1,470 billion, and as of March 31, 2008, the aggregate amount of loans and investments outstanding was ¥11,992 billion.
Loans and Investments Outstanding by Project Area
| | |
| | | Percentage
(by project area) |
| | | (%) |
Community development | | 52.8 |
Environmental conservation and sustainable societies | | 28.5 |
Creation of technologies and industries | | 15.7 |
Improvement of social capital | | 3.0 |
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New Loans and Investments by Project Area
| | |
| | | Percentage
(by project area) |
| | | (%) |
Community development | | 47.0 |
Environmental conservation and sustainable societies | | 16.9 |
Creation of technologies and industries | | 35.6 |
Improvement of social capital | | 0.4 |
The following table sets forth DBJ’s plan for its loans and investments by project area for the fiscal year ending March 31, 2009. During the fiscal year ending March 31, 2009, DBJ plans to make loans and investments in the aggregate amount of ¥735 billion.
Loans and Investments Planned by Project Area for the Fiscal Year Ending March 31, 2009
| | | |
| | | Percentage
(by project area) | |
Technologies reform and economic revitalization | | 28.6 | % |
Support for regional economies | | 46.3 | |
Environmental measures and infrastructure | | 25.2 | |
| | | |
Total | | 100.0 | % |
| | | |
Guarantee Operations
DBJ also has the authority to guarantee borrowings incurred for purposes consistent with its policies. As of March 31, 2008, DBJ’s guarantee obligations amounted to ¥173,456 million. The amount of guarantee obligations decreased by ¥161,537 million during the fiscal year ended March 31, 2008.
Greater Focus on Three Priority Areas
In light of policies developed by the Council on Economic and Finance Policy and other government bodies, DBJ will focus on investment and loan programs intended to promptly address pressing matters among policy issuers in fields such as the new financial methods, the environment, and privatization. Particular emphasis was laid on the issues listed below.
Engaging in new financial methods and promoting risk-taking:
| | • | | DBJ will actively use various new financial methods to assist the private sector in increasing its lending, and promote the participation of private financial institutions in higher-risk projects. |
Appropriate response to urgent policy issues:
| | • | | DBJ will supply “risk money” for the purposes of supporting growth, improving competitiveness of companies, and revitalizing urban and regional areas. In addition, to ensure safety and security, DBJ will provide financial support for disaster prevention and disaster mitigation measures, and measures to balance protection of the environment with economic growth. |
Revitalization of “environmental finance”
| | • | | In order to “increase money flow that is environmentally-friendly”, DBJ will promote the formation of environmentally-friendly funds. |
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Expansion of self-procurement methods in advance of privatization:
| | • | | Long-term borrowing agreements was implemented with private financial institutions during the fiscal year ended March 31, 2008, in advance of amendments to laws for the transfer to a new system. |
| | • | | DBJ established a ¥100 billion EMTN program for non-guaranteed bonds on August 14, 2008 to diversify its financing methods and expand its investor base as well as increasing the stability of its fundraising. |
Loan, Guarantee and Investment Terms
DBJ develops annually a set of loan, guarantee and investment guidelines as required by Section 1 of Article 23 of the DBJ Law. DBJ’s guidelines for the fiscal year ending March 31, 2009 are described below:
Basic Policy on Loans and Related Matters
DBJ conducts its operations regarding loans, debt guarantees, acquisitions of corporate bonds, assumptions of obligations, and investments in accordance with its mid-term policy and its loan, guarantee and investment guidelines with the aim of complementing and encouraging private financing and under the principle of certainty of repayment.
Terms described in the loan, guarantee and investment guidelines under Article 2 of the Enforcement Order for the DBJ Law are also specified in each item under its lending policy.
Interest Rates
DBJ bases its interest rates to be charged on (i) the principle of equalization of income and expenditure, so that DBJ’s revenues will cover its expenditures and losses, and (ii) on financial market conditions, including the normal terms applied by commercial financial institutions to loans or debt guarantees.
DBJ sets the interest rate applicable to each loan in accordance with interest rates categorized and predetermined by projects specified under its lending policy.
The guarantee rates applied to debt guarantees are determined in consideration of the guarantee rates of commercial financial institutions and other factors and of general financial conditions.
The yields on acquisition of corporate bonds are required to be as follows: in a subscription for the full amount of an entity’s private placement bonds, the yields shall be the same as interest rates on loans; in a subscription for partial amounts, the yields shall be the same as those of other investors; and in publicly issued bonds (straight corporate bonds only), the yields shall be the same as those in the market.
Participation Ratios
The ratios of DBJ’s participation to the total cost of applicable projects with respect to loans, guarantees, and acquisition of corporate bonds are as follows:
Loans and acquisitions of corporate bonds
In principle, DBJ’s participation ratios are set within the limits set forth in each applicable project in the category of “loans”. With respect to subscriptions to publicly-issued bonds, the ceiling is set at 50% of the project cost or 50% of the issue amount, whichever is lower.
The ceiling on the ratio of loans to companies with outstanding capability to raise long-term funds (i.e., listed companies whose bonds are classified as triple-A) shall be 30% and the ceiling on the ratio of loans to companies with fair capability to raise long-term funds, such as companies whose bonds are classified as double- or single-A shall be 40%, although in exceptional circumstances such loan ratios can be flexible when a loan is requested by a private financial institution or when the purpose of the loan is of a highly public nature.
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Debt guarantees
In principle, the upper limit on DBJ’s project participation through debt guarantees, combined with loans, shall be 80% of the project cost. The range of guarantees shall in principle be 80% of the debts incurred with respect to each applicable project.
When providing guarantees for issuances of corporate bonds, DBJ maintains a flexible stance in relation to upper limits and other aspects.
Investments
DBJ’s guidelines state that it will make investments in projects or entities: (1) the activities of which accord substantially with the Japanese Government policies and have a strongly public character; (2) such as funds that invest in entities that would otherwise be eligible for lending and other support under DBJ’s investment and lending guidelines; (3) the activities of which are desirable from a policy perspective but, because they are unlikely to become profitable quickly due to risks and low profitability in the early stages, would not be feasible with private financing alone; (4) in which private companies are expected to make sizable investments, excluding entities conducting projects which, from the perspectives of profitability and risk, would be feasible from private financing alone; and (5) which are regarded as certain to generate sufficient profits to cover projected dividends related to the investment.
In principle, the ceiling shall be 50% of the capital of the recipient of an investment.
Currency and Other Matters
All of DBJ’s loans are denominated in Japanese yen, except for foreign currency loans, which accounted for 0.5% of DBJ’s total loans outstanding as of March 31, 2008. DBJ is required by the DBJ Law to make loans with an original maturity of at least one year.
Allowance for Loan Losses
DBJ provides an allowance for loan losses, up to the maximum level permitted pursuant to an ordinance of the applicable Ministry of Finance. See Note 2 of “Notes to Non-consolidated Financial Statements”. As of March 31, 2008, the allowance totaled ¥34,729 million, which is equal to 0.3% of the total loans actually outstanding at that date.
Non-performing Loans
In cases where borrowers are unable to meet payments on their loans, DBJ may revise the terms of repayment in cooperation with other lenders.
DBJ has introduced self-assessment standards (“jiko satei kijun”) to assess the credit quality of its assets in accordance with the Financial Inspection Manual of the Financial Services Agency and discloses its non-performing loans calculated under the Banking Law of 1981, as amended (the “Banking Law”), as well as the Law of the Emergency Measures for the Revitalization of the Functions of the Financial System of 1998, as amended (the “Financial Revitalization Law”). DBJ utilizes its financial statements prepared on a basis consistent with accounting principles generally accepted (“Japanese GAAP”) in Japan for the purposes of these self-assessments. For example, where loans to bankrupt or essentially bankrupt borrowers are covered by collateral or guarantees, the loan amount is directly reduced by deducting the amount of the loan that is not deemed to be covered by the assessed value of the collateral and/or the amounts deemed to be recoverable through guarantees, from the amount of the loan.
DBJ assesses its loans in accordance with disclosure requirements which are based, in all material respects, on those set forth in the Banking Law. The following table sets forth the non-performing loans of DBJ outstanding as of the dates indicated, calculated pursuant to the Banking Law disclosure requirements, which are set forth in the notes to the table. As discussed above, the amounts listed in the table below reflect the amounts in DBJ’s consolidated financial statements prepared pursuant to Japanese GAAP.
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Principal Amount of Non-Performing Loans
Calculated and Disclosed under the Banking Law (A)
| | | | | | | | |
| | | As of March 31, | |
| | | 2007 | | | 2008 | |
| | | (amounts in 100 millions) | |
Loans to bankrupt debtors (B) | | ¥ | 75 | | | ¥ | 13 | |
Delinquent loans (C) | | | 640 | | | | 574 | |
| | | | | | | | |
Subtotal | | | 715 | | | | 587 | |
| | | | | | | | |
Percentage against the total loans outstanding | | | 0.6 | % | | | 0.5 | % |
Loans past due three months or more (D) | | | 0 | | | | 0 | |
Restructured loans (E) | | | 736 | | | | 609 | |
| | | | | | | | |
Total non-performing loans | | ¥ | 1,452 | | | ¥ | 1,197 | |
| | | | | | | | |
Percentage against the total loans outstanding | | | 1.2 | % | | | 1.0 | % |
| (A) | The amounts of loans indicated above are stated as gross amounts, before reduction of allowance for loan losses. |
| (B) | “Loans to bankrupt debtors” represent non-accrual loans to debtors who are legally bankrupt as defined in Article 96-1-3 and 4 of the Japanese Tax Law Enforcement Regulation. |
| (C) | “Delinquent loans” represent non-accrual loans other than (i) Loans to bankrupt debtors and (ii) Loans whose interest payments are deferred in order to assist or facilitate the restructuring efforts of borrowers in financial difficulty. |
| (D) | “Loans past due three months or more” are loans whose principal or interest payment is three months or more past due and do not fall under the category of “Loans to bankrupt debtors” or “Delinquent loans”. |
| (E) | “Restructured loans” are loans whose repayment terms have been modified to the advantage of debtors through means such as reduction or exemption of interest rates, postponement of principal and interest payments and forgiveness of loans to support or restructure the debtors’ businesses, and do not fall under the category of “Loans to bankrupt debtors”, “Delinquent loans” or “Loans past due three months or more”. |
In addition, DBJ voluntarily assesses its loans in accordance with disclosure requirements which are based, in all material respects, on those set forth in the Financial Revitalization Law in accordance with which the Japanese commercial banks generally disclose information in relation to their loans. The following table sets forth non-performing loans of DBJ outstanding as of the dates indicated, calculated pursuant to the Financial Revitalization Law disclosure requirements, which are set forth in the notes to the table. The amounts listed in the table below reflect the amounts in DBJ’s non-consolidated financial statements prepared pursuant to Japanese GAAP.
Principal Amount of Non-Performing Loans
Calculated and Disclosed under the Financial Revitalization Law (A)
| | | | | | | | |
| | | As of March 31, | |
| | | 2007 | | | 2008 | |
| | | (amounts in 100 millions) | |
Loans to borrowers in bankruptcy or quasi-bankruptcy (B) | | ¥ | 95 | | | ¥ | 25 | |
Loans to borrowers with imminent bankruptcy (C) | | | 621 | | | | 561 | |
Loans requiring special attention for recovery (D) | | | 736 | | | | 610 | |
| | | | | | | | |
Subtotal | | | 1,452 | | | | 1,197 | |
| | | | | | | | |
Percentage against the total loans outstanding | | | 1.2 | % | | | 1.0 | % |
Normal loans (E) | | | 123,937 | | | | 116,434 | |
| | | | | | | | |
Total loans outstanding | | ¥ | 125,390 | | | ¥ | 117,632 | |
| | | | | | | | |
| (A) | The figures in the table above reflect partial direct write-offs. |
| (B) | Loans to financially failed borrowers, who are subject to bankruptcy, corporate reorganization or other similar proceedings, as well as loans similar thereto. |
| (C) | Loans to borrowers who have not financially failed, but the financial condition and operating results have deteriorated and are likely to default on contractually mandated payment of principal and/or interest. |
| (D) | Comprised of (1) loans for which principal and/or interest payments are three months or more past due (excluding loans that are included in “Loans to borrowers in bankruptcy or quasi-bankruptcy” and “Loans entailing risk”), and (2) restructured loans the terms of which have been modified by DBJ to grant concessions to borrowers in financial difficulties in order to assist such borrowers’ restructuring and to expedite collection of such loans (excluding loans that are included in “Loans to borrowers in bankruptcy or quasi-bankruptcy”, “Loans entailing risk” and “Loans for which principal and/or interest payments are three months or more past due”). |
| (E) | Other than those set forth in (B), (C) and (D) above, loans to borrowers whose financial condition and operating results are deemed to have no material defects. |
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The following table breaks down DBJ’s outstanding non-performing loans by industry calculated and disclosed under the Banking Law. The amounts listed in the table below reflect the amounts in DBJ’s consolidated financial statements prepared pursuant to Japanese GAAP.
Outstanding Non-Performing Loans by Industry
Calculated and Disclosed under the Banking Law
| | | | | | |
| | | As of March 31, |
| | | 2007 (1) | | 2008 |
| | | (amounts in 100 millions) |
Manufacturing | | ¥ | 71 | | ¥ | 108 |
Agriculture, fishery and forestry | | | 0 | | | 0 |
Mining | | | 5 | | | — |
Construction | | | — | | | — |
Electricity, gas, heat and water supply | | | 5 | | | 36 |
Information and communications | | | 108 | | | 54 |
Transport | | | 113 | | | 117 |
Wholesalers and retailers | | | 77 | | | 37 |
Financial and insurance businesses | | | — | | | — |
Real estate | | | 634 | | | 466 |
Various services | | | 436 | | | 374 |
Local public bodies | | | — | | | — |
| | | | | | |
Total | | ¥ | 1,452 | | ¥ | 1,197 |
| | | | | | |
| (1) | Categories of project areas are reclassified in accordance with the classification for the fiscal year ended March 31, 2008. |
DBJ invests in and finance projects of public use and interest run by local government organizations referred to as “third sector corporations”. Though there is no clear definition of this term, DBJ uses it to refer to corporations in which local government organizations have invested or subscribed for shares, whose securities are not listed on any securities exchange or quoted in any over-the-counter market, that carry out projects with significant civic importance and public benefits. DBJ finances projects such as those involving railways, airport terminals, cable television broadcasters and urban development, including underground parking lots, urban redevelopment and international conference halls. Because these projects tend to require a long period of time for investments to generate returns, they do not easily attract private corporation participants.
The ratio of non-performing loans in the third-sector is relatively high as compared to our loan operations in general due to the fact that in general the third-sector businesses have a highly public nature and require a long period of time to recoup investments. In addition, there was some decrease in revenue performance resulting from economic stagnation. We make efforts to maintain our primary policy of conducting our third-sector loan operations in collaboration with related parties, including local public authorities.
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The following table shows more detailed information of our non-performance loans to third-sector companies. The amounts listed in the table below reflect the amounts in DBJ’s consolidated financial statements prepared pursuant to Japanese GAAP.
Non-Performing Loans to Third-Sector Companies
| | | | | | | | | |
| | | As of March 31, | |
| | | 2007 | | | 2008 | | | Increase (Decrease) | |
| | | (amounts in ¥100 millions) | |
Loans to bankrupt debtors | | 50 | | | 7 | | | (43 | ) |
Delinquent loans | | 188 | | | 129 | | | (59 | ) |
Loans past due three months or more | | — | | | — | | | — | |
Restructured loans | | 494 | | | 446 | | | (47 | ) |
| | | | | | | | | |
Total (A) | | 733 | | | 583 | | | (150 | ) |
| | | | | | | | | |
Outstanding loans to the third-sector (B) | | 12,136 | | | 10,890 | | | (1,246 | ) |
| | | |
Ratio of outstanding loans = (A)/(B) | | 6.0 | % | | 5.4 | % | | (0.7 | )% |
The following table sets forth certain information of DBJ’s credit sales related costs or gains. The amounts listed in the table below reflect the amounts in DBJ’s consolidated financial statements prepared pursuant to Japanese GAAP.
| | | | | | | | |
| | | Fiscal Year ended March 31, |
| | | 2007 | | | 2008 | | | Increase (Decrease) |
| | | (amounts in ¥100 millions) |
Amount transferred to (from) the individual provision for loan losses | | (239 | ) | | (139 | ) | | 100 |
Write-off of loans | | 29 | | | 79 | | | 49 |
Others | | (55 | ) | | (27 | ) | | 27 |
| | | | | | | | |
Subtotal | | (264 | ) | | (87 | ) | | 176 |
| | | | | | | | |
Amount transferred to (from) the general provision for loan losses | | (232 | ) | | (104 | ) | | 127 |
| | | | | | | | |
Total sum of credit sales related costs (gains) | | (496 | ) | | (191 | ) | | 304 |
| | | | | | | | |
Sources of Funds
DBJ’s sources of funds consist of its capital, borrowings from the government and private financial institutions, issuance of bonds and internally generated funds such as loan recoveries.
The aggregate amount of the government loans is decided annually as part of the Fiscal Investment and Loan Program, and actual disbursement of the loans is made in installments during the fiscal year to satisfy the DBJ’s funding requirements. Aggregate borrowings as of March 31, 2008 amounted to ¥6,820 billion. The breakdown was as follows: ¥6,559,584 million from the Fiscal Loan Fund, ¥29,792 million from the former Reserve Funds of the Postal Life Insurance Special Account and ¥231,067 million from the Industrial Investment Special Account. DBJ expects to borrow approximately ¥338,000 million from the Japanese Government.
As of March 31, 2008, the aggregate amount outstanding of DBJ’s bonds issued in overseas markets amounted to ¥1,112 billion (of which ¥50 billion were non-government guaranteed bonds). As of March 31, 2008, the outstanding amount of DBJ’s government guaranteed bonds and government-underwritten bonds issued in the domestic market totaled ¥842 billion. ¥1,205 billion of DBJ’s non-guaranteed bonds issued in the domestic market remained outstanding as of March 31, 2008.
12
The following table sets forth funds raised or expected to be raised by DBJ for the periods indicated. The figures for the fiscal year ended March 31, 2008 are actual figures, while those in respect of the fiscal year ending March 31, 2009 are budgeted numbers.
| | | | | | |
| | | For the year ended/ending
March 31, |
| | | 2008
(Actual) | | 2009
(Budget) |
| | | (amounts in ¥100 millions) |
Borrowings from the Government | | ¥ | 3,701 | | ¥ | 3,380 |
Domestic government-guaranteed bonds | | | 1,900 | | | 2,000 |
Overseas government-guaranteed bonds | | | 1,884 | | | 1,600 |
Non-guaranteed bonds | | | 2,898 | | | 3,200 |
Borrowings from the private financial institutions | | | 1,000 | | | 2,000 |
Other | | | 2,776 | | | 2,520 |
| | | | | | |
Total | | ¥ | 14,160 | | ¥ | 14,700 |
| | | | | | |
Risk Management
DBJ has various internal supervisory and risk management systems including the following:
| | • | | Operations Management System: DBJ carries out its activities in accordance with its Medium-Term Policy Principles, and prepares and publishes Investment and Finance Guidelines for each fiscal year. DBJ has established a Management Council comprised of outside experts, assembled in compliance with the DBJ Law to examine and publish the status of operations in relation to items stated in the Medium-Term Policy Principles. |
| | • | | Internal Management System: DBJ’s budget is submitted to the Japanese Diet for approval each year. The Diet approval is also required for DBJ’s financial statements. Overall operations are reviewed by DBJ’s Board of Audit, the Ministry of Finance, and the Financial Services Agency. Under the DBJ Law, the executive serving as Auditor monitors the operations. |
| | • | | Disclosure: DBJ voluntarily performs self-assessments of its assets, and discloses its financial statements prepared in accordance with Japanese GAAP, which are audited by independent auditors, in order to increase the accuracy and transparency of its financial information. |
| | • | | Internal Audit Systems: DBJ’s Internal Audit Department performs internal auditing and inspections in order to ensure effective and efficient risk management, reliable financial reporting, and compliance with laws and regulations. |
| | • | | Asset/Liability Management (“ALM”) and the Risk Management System: in order to ensure appropriate management of individual risk categories, DBJ has developed an asset/liability and risk management system that clarifies which department is responsible for each type of risk. ALM and Risk Management Department oversees comprehensive asset/liability and risk management activities. |
13
| | • | | Credit Risk Management: credit risk refers to the potential for losses due to decline or complete loss in asset value because of deterioration in the financial condition of a borrower. Credit risk management requires credit management of individual loans as well as bank-wide portfolio management. |
| | • | | Credit Administration of Individual Loans: DBJ applies an internal rating system for examining a borrower’s or an investee’s viability and profitability, and voluntarily carries out independent asset evaluations in line with the Self-Assessment Criteria based on the Financial Services Agency’s Financial Inspection Manual. |
| | • | | Portfolio Management: DBJ performs a comprehensive analysis of data used in internal ratings and self-assessment such as loan defaults, and calculates the loan portfolio’s overall exposure to credit risk. Monitoring and consideration of countermeasures allows DBJ to control risk and devise effective measures to improve risk return. |
| | • | | Market Risk: Market risk can be broadly classified into interest rate risk and exchange risk. DBJ takes the steps described below to control market risk. |
| | • | | Interest Rate Risk: DBJ calculates and analyses risk exposure with cash flow ladder analyses (“gap analysis”), value at risk (“VaR”), interest rate sensitivity analyses (“basis point value”), and other methods. A portion of the interest rate risk associated with lending operations is covered through interest rate swaps, which are used solely for hedging purposes. |
| | • | | Exchange Risk: DBJ’s exchange risk derives from issuing foreign currency bonds and the extension of foreign currency loans. DBJ uses currency swaps to hedge this risk. DBJ manages counterparty risk in swap transactions by continually monitoring the creditworthiness of all parties, and by diversifying transactions among several institutions. |
| | • | | Liquidity Risk: as its main method of acquiring funds, DBJ relies on the stable procurement of long-term funds from the Japanese Government’s FILP, government-guaranteed bonds, and FILP agency (zaito) bonds, rather than on short-term funds such as deposits. To meet unexpected short-term funding requirements, funds on hand are placed primarily in short-term investments, taking security and liquidity into consideration. Overdraft lines of credit have been established with multiple private financial institutions. DBJ also maintains daytime liquidity by using Japan’s Real Time Gross Settlement (“RTGS”), whereby settlements are made instantly for each transaction. |
14
MANAGEMENT
DBJ is managed by a Governor, two Deputy Governors and up to 12 Senior Executive Directors. In addition to these officers, DBJ has up to two Auditors. The Governor and the Auditors are appointed by the Minister of Finance, and the Deputy Governors are appointed by the Governor with the approval of the Minister of Finance. The Senior Executive Directors are appointed by the Governor.
The Governor is DBJ’s chief executive officer, and the Deputy Governors serve as his alternate. The Senior Executive Directors perform various management functions in accordance with delegations from the Governor, but final authority in all matters resides exclusively with the Governor.
The Auditors audit the business of DBJ and may submit their views to the Governor or the Minister of Finance when they deem it necessary on the basis of the result of their audit. The Auditors audit DBJ’s financial statements semi-annually. Their opinion, together with the financial statements, is submitted to the Minister of Finance within two months after the end of each semi-annual period, or within three months after the end of each fiscal year.
DBJ’s Governor, Deputy Governors, Senior Executive Directors and Auditors are as follows.
| | | | |
Title | | | | Name |
Governor | | | | Minoru Murofushi |
| Deputy Governors | | | | Hideto Fujii |
| | |
| | | | Mikio Araki |
Senior Executive Directors | | | | Keiji Taga |
| | |
| | | | Hisato Nagaoka |
| | |
| | | | Yo Takeuchi |
| | |
| | | | Masanori Yanagi |
| | |
| | | | Tetsuhiko Shindo |
| | |
| | | | Hiroshi Takahashi |
| | |
| | | | Kenichiro Hirata |
| | |
| | | | Yasutoshi Kojima |
| | |
| | | | Kan Ishii |
| | |
| | | | Akiyoshi Horiuchi |
| | | | |
| Auditors | | | | Tsuyoshi Inoue |
| | |
| | | | Ryo Ishimori |
15
DEBT RECORD
There has been no default in the payment of interest or principal on any obligation of DBJ or its predecessors.
FINANCIAL STATEMENTS OF DEVELOPMENT BANK OF JAPAN AND AUDITORS
The DBJ Law requires DBJ to prepare statutory financial statements semi-annually and to submit them, together with an opinion of both Auditors thereon, to the Minister of Finance. As described under “Management”, the Auditors are appointed by the Minister of Finance. Their duties under the DBJ Law include performing an audit of DBJ’s statutory financial statements, which may not be comparable to an audit as that term is generally understood in the United States of America. DBJ’s statutory financial statements are made available to the public. The accounts of the Japanese government agencies, which include DBJ, are examined annually by the Board of Audit to determine compliance with certain statutory requirements. The Board of Audit is an independent body created by the Constitution of Japan, and its Examination Reports on the accounts of DBJ and the other Japanese government agencies, together with its Audit Reports on the final accounts of the government, are submitted to the Diet through the Cabinet.
Since the fiscal year ended March 31, 2001, DBJ has prepared and made public financial statements prepared in accordance with Japanese GAAP, in addition to preparing the statutory financial statements in accordance with the DBJ Law and regulations thereunder. DBJ’s Japanese GAAP financial statements consist of balance sheets, statements of operations, statements of cash flows, statements of equity, and accompanying notes, all presented in accordance with Japanese GAAP and available in English as well as in Japanese (see Exhibit 4 to this Annual Report on Form 18-K for the English language translation). DBJ’s Japanese GAAP consolidated and non-consolidated financial statements for the fiscal year ended March 31, 2008 have been audited by Deloitte Touche Tohmatsu, independent accountants, as stated in their reports, which are set forth in Exhibit 4 to this Annual Report on Form 18-K. The previous accounting firm that audited DBJ’s Japanese GAAP financial statements for the fiscal years ended March 31, 2001 through 2007 dissolved effective July 31, 2007. In preparing the financial statements presented in accordance with Japanese GAAP, DBJ made necessary adjustments to its statutory financial statements, which were prepared based on the DBJ’s statutes and related regulations as well as accounting principles applied to special public corporations.
The principal differences in the accounting practices between DBJ’s statutory financial statements and its Japanese GAAP financial statements are as follows:
| | | | |
| | | Accounting principles applied to special public corporations | | Accounting principles applied to commercial enterprises |
| Asset self-assessment and allowance in relation to loans and equity investments | | An allowance for loan losses, prescribed in Section 16 of Notification No. 284 (1999) of the Ministry of Finance pursuant to Article 4, Paragraph 3 of the Enforcement Order for the DBJ Law, is established (up to 0.3% of the outstanding loan amount at the fiscal year end). | | Borrowers and creditors are categorized in accordance with the Financial Inspection Manual of the Financial Services Agency (the “Financial Inspection Manual”), and an allowance is established, including partial direct write-offs. |
| | |
| | An allowance for equity investment losses is not required. | | An allowance for equity investment losses is established in the same manner as the allowance for loan losses, in accordance with the Financial Inspection Manual. |
16
| | | | |
| | | Accounting principles applied to special public corporations | | Accounting principles applied to commercial enterprises |
| Allowance for Employee Retirement Benefits | | An allowance for employee retirement benefits is not required (no carry-over to the next term). | | An allowance for retirement benefits, including such benefits for officers, is calculated based on the accrued retirement benefits and projected retirement assets at the date of the balance sheets and in consideration of any actuarial differences in accordance with the accounting principles regarding retirement benefits. (Opinion letter, dated Jun. 16, 1998, on establishment of the accounting principles in relation to employee retirement benefits, submitted by Business Accounting Council). |
| | |
| Financial instruments and others | | No mark-to-market accounting is applied. | | Available-for-sale securities are evaluated using market values and hedge accounting for interest swap transactions is applied in accordance with the accounting principles for financial instruments (Opinion letter, dated Jan. 22, 1999, on establishment of the accounting principles in relation to financial instruments, submitted by Business Accounting Council). |
| | |
| | | | Some foreign currency denominated assets are translated into Japanese yen using the market exchange rate prevailing at the end of the fiscal term, and foreign currency swaps in relation to foreign denominated loans and bonds are translated at contractual rates, in accordance with the accounting principles for foreign currency denominated transactions (Opinion letter, dated Oct. 22, 1999, on amendment of the accounting principles for foreign currency denominated transactions, submitted by Business Accounting Council). |
| | |
| | | | Accounting principles generally considered most fair and suitable are applied for appropriation of other items, such as unpaid and prepaid expenses. |
| Note: | The total amount of difference between the balance sheets is included in “Accumulated Deficit” under “Retained Earnings” and “Net Unrealized Gains on Available-for-sale Securities, Net of Taxes” under “Equity”, and the total amount of difference between the statements of income is included in “Net earnings/losses”, each in the non-consolidated financial statements prepared in accordance with Japanese GAAP. |
17
REPORT OF AUDITORS
MR. MINORU MUROFUSHI, Governor
DEVELOPMENT BANKOF JAPAN
9-1, Otemachi 1-chome
Chiyoda-ku, Tokyo
We have audited the balance sheets of the Development Bank of Japan (“DBJ”) as of March 31, 2007 and 2008 and the related statements of income for the two fiscal years ended March 31, 2008. Our audit was made in accordance with the Development Bank of Japan Law and the regulations thereunder.
The accounting principles and procedures followed by DBJ are those generally followed by special public corporations in Japan, and the aforesaid balance sheets and statements of income have been prepared in conformity with such accounting principles and procedures applied on a consistent basis in all material respects.
The accompanying balance sheets of DBJ as of March 31, 2007 and 2008 and statements of income for the two fiscal years ended March 31, 2008 have been prepared by reclassifying the aforesaid financial statements. We have reviewed the reclassifications made in preparing such financial statements and, in our opinion, such statements, as reclassified, fairly present on a consistent basis the financial position of DBJ as of March 31, 2007 and 2008 and the results of its operations for the two fiscal years ended March 31, 2008.
|
/s/ Tsuyoshi Inoue |
Tsuyoshi Inoue Auditor Development Bank of Japan |
|
/s/ Ryo Ishimori |
Ryo Ishimori Auditor Development Bank of Japan |
Tokyo, June 25, 2008
18
Development Bank of Japan
NON-CONSOLIDATED BALANCE SHEETS
| | | | | | | | | | | | |
| | | Millions of yen | | | Thousands of
U.S. dollars | |
At March 31 | | 2008 | | | 2007 | | | 2008 | |
Assets | | | | | | | | | | | | |
Cash and Due from banks (Note 3) | | ¥ | 159,906 | | | ¥ | 33,979 | | | $ | 1,596,028 | |
Securities (Note 4) | | | 367,346 | | | | 406,533 | | | | 3,666,496 | |
Loans (Note 5) | | | 11,576,662 | | | | 12,197,441 | | | | 115,547,085 | |
Less-Allowance for Loan Losses | | | (34,729 | ) | | | (36,592 | ) | | | (346,641 | ) |
| | | | | | | | | | | | |
| | ¥ | 11,541,932 | | | ¥ | 12,160,849 | | | | 115,200,444 | |
| | | |
Equity Investments | | | 415,653 | | | | 291,470 | | | | 4,148,652 | |
| | | |
Premises and Equipment (Note 6) | | | 56,830 | | | | 56,357 | | | | 567,226 | |
Less-Accumulated depreciation | | | (20,936 | ) | | | (20,436 | ) | | | (208,965 | ) |
| | | 35,894 | | | | 35,920 | | | | 358,261 | |
| | | |
Accrued Income Receivable (Note 7) | | | 43,468 | | | | 49,162 | | | | 433,861 | |
Other Assets (Note 8) | | | 1,511 | | | | 1,679 | | | | 15,086 | |
Discounts on Bonds and Notes | | | 4,582 | | | | 3,951 | | | | 45,734 | |
Customers’ Liabilities for Acceptances and Guarantees | | | 173,456 | | | | 334,993 | | | | 1,731,276 | |
| | | | | | | | | | | | |
Total Assets | | ¥ | 12,743,750 | | | ¥ | 13,318,541 | | | $ | 127,195,838 | |
| | | | | | | | | | | | |
| | | |
Liabilities, Capital and Statutory Reserve | | | | | | | | | | | | |
| | | |
Liabilities | | | | | | | | | | | | |
Bonds and Notes | | ¥ | 3,160,003 | | | ¥ | 2,673,964 | | | $ | 31,540,106 | |
Long-term Borrowings (Note 9) | | | 6,932,546 | | | | 7,862,935 | | | | 69,193,998 | |
Accrued Expenses Payable (Note 10) | | | 36,247 | | | | 37,456 | | | | 361,784 | |
Other Liabilities (Note 11) | | | 20,268 | | | | 21,219 | | | | 202,299 | |
Acceptances and Guarantees | | | 173,456 | | | | 334,993 | | | | 1,731,276 | |
| | | | | | | | | | | | |
Total Liabilities | | | 10,322,521 | | | | 10,930,569 | | | | 103,029,463 | |
| | | | | | | | | | | | |
| | | |
Capital and Statutory Reserve | | | | | | | | | | | | |
Capital (Note 12) | | | 1,272,286 | | | | 1,272,286 | | | | 12,698,732 | |
Statutory Reserve (Note 2 (j)) | | | 1,148,943 | | | | 1,115,686 | | | | 11,467,643 | |
| | | | | | | | | | | | |
Total Capital and Statutory Reserve | | | 2,421,229 | | | | 2,387,972 | | | | 24,166,375 | |
| | | | | | | | | | | | |
Total Liabilities, Capital and Statutory Reserve | | ¥ | 12,743,750 | | | ¥ | 13,318,541 | | | $ | 127,195,838 | |
| | | | | | | | | | | | |
Accompanying notes are an integral part of these financial statements.
19
Development Bank of Japan
NON-CONSOLIDATED STATEMENTS OF INCOME
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
For the Fiscal Years ended March 31 | | 2008 | | 2007 | | 2008 |
Interest Income | | | | | | | | | |
Interest on Loans | | ¥ | 304,101 | | ¥ | 327,345 | | $ | 3,035,250 |
Interest on Securities | | | 4,597 | | | 2,752 | | | 45,888 |
Other Interest Income | | | 1,276 | | | 335 | | | 12,738 |
| | | | | | | | | |
| | | 309,975 | | | 330,434 | | | 3,093,876 |
| | | | | | | | | |
Interest Expenses | | | | | | | | | |
Interest on Bonds and Notes | | | 54,999 | | | 43,441 | | | 548,951 |
Interest on Borrowings | | | 162,662 | | | 192,697 | | | 1,623,540 |
| | | | | | | | | |
| | | 217,661 | | | 236,138 | | | 2,172,491 |
| | | | | | | | | |
Net Interest Income | | | 92,313 | | | 94,295 | | | 921,385 |
| | | | | | | | | |
Other Income | | | | | | | | | |
Fees and Commissions (Note 13) | | | 4,997 | | | 3,526 | | | 49,882 |
Other (Note 14) | | | 18,211 | | | 15,692 | | | 181,765 |
| | | | | | | | | |
| | | 23,208 | | | 19,218 | | | 231,647 |
| | | | | | | | | |
Administrative and Other Expenses | | | | | | | | | |
Salaries and related expenses | | | 16,681 | | | 16,351 | | | 166,504 |
Other administrative expenses | | | 12,057 | | | 9,789 | | | 120,347 |
Depreciation | | | 773 | | | 789 | | | 7,719 |
Fees and Commissions (Note 15) | | | 6 | | | 14 | | | 63 |
Write-off of Claims (Note 16) | | | 35,481 | | | 45,543 | | | 354,137 |
Other (Note 17) | | | 16,627 | | | 4,245 | | | 165,963 |
| | | | | | | | | |
| | | 81,628 | | | 76,733 | | | 814,733 |
| | | | | | | | | |
Income before Allowance for Loan Losses | | | 33,894 | | | 36,780 | | | 338,299 |
Reversal of Allowance for Loan Losses | | | 1,862 | | | 2,311 | | | 18,588 |
| | | | | | | | | |
Net Income (Note 2(i)) | | ¥ | 35,756 | | ¥ | 39,092 | | $ | 356,887 |
| | | | | | | | | |
| | | |
Appropriation of Net Income (Note 2(j)) | | | | | | | | | |
Statutory reserve | | | 34,729 | | | 36,592 | | | 346,641 |
Payment to National Treasury | | | 1,026 | | | 2,499 | | | 10,246 |
| | | | | | | | | |
Total Appropriation of Net Income | | ¥ | 35,756 | | ¥ | 39,092 | | $ | 356,887 |
| | | | | | | | | |
Accompanying notes are an integral part of these financial statements.
20
Development Bank of Japan
NON-CONSOLIDATED LIST OF ASSETS
| | | | | | | | | | | | | | | | |
March 31, 2008 | | Millions of
yen | | | Thousands of
U.S. dollars | | | Remarks(Millions of yen/ Thousands of U.S. dollars) |
Cash and Due from banks | | ¥ | 159,906 | | | $ | 1,596,028 | | | | | | | | | |
Cash | | | 1 | | | | 16 | | | | | | | | | |
Due from banks | | | 159,904 | | | | 1,596,012 | | | Current deposits: 24 banks, including Bank of Japan | | ¥ | 8,904 | | $ | 88,875 |
| | | | | | | | | | Ordinary deposits: 2 banks, including Sumitomo Mitsui Banking Corporation | | ¥ | 11,000 | | $ | 109,792 |
| | | | | | | | | | Certificate of Deposit: 4 banks, including Aozora Bank, Ltd. | | ¥ | 140,000 | | $ | 1,397,345 |
Securities | | | 367,346 | | | | 3,666,496 | | | | | | |
| | | | | |
| Japanese Government Bonds | | 277,587 | | | 2,770,608 | | | Issues | | Face
value | | Book
value |
| | | | | | Financing bills: 2 holdings | | ¥ | 137,100 | | ¥ | 136,925 |
| | | | | | | | $ | 1,368,400 | | $ | 1,366,662 |
| | | | | | Coupon-bearing government bonds | | ¥ | 140,000 | | ¥ | 140,661 |
| | | | | | (2,5,10 years): 28 holdings | | $ | 1,397,345 | | $ | 1,403,946 |
Corporate Bonds | | | 81,748 | | | | 815,933 | | | 42 holdings | | | |
Other securities | | | 8,010 | | | | 79,955 | | | | | | Book value |
| | | | | | Secured debt obligations: 2 holdings | | ¥ | 8,000 | | $ | 79,848 |
| | | | | | Equity acquired by excising of warrants, etc.: 2 holdings | | ¥ | 10 | | $ | 107 |
Loans | | | 11,576,662 | | | | 115,547,085 | | | 13,236 holdings | | | |
Yen loans | | | 11,517,183 | | | | 114,953,426 | | | 13,194 holdings | | | |
Direct loans | | | 11,516,398 | | | | 114,945,586 | | | 13,189 holdings | | | |
Agency loans | | | 785 | | | | 7,840 | | | 5 holdings | | | |
Foreign currency loans | | | 59,478 | | | | 593,659 | | | 42 holdings | | | |
Allowance for Loan Losses | | | (34,729 | ) | | | (346,641 | ) | | | | | |
| | | | |
Equity Investments | | | 415,653 | | | | 4,148,652 | | | 1,069 holdings | | | |
| | | | |
Premises and Equipment | | | 35,894 | | | | 358,261 | | | | | | |
Premises and Equipment for Business | | | 35,894 | | | | | | | | | | |
21
Development Bank of Japan
NON-CONSOLIDATED LIST OF ASSETS (Cont’d)
| | | | | | | | | | | | | | | | |
March 31, 2008 | | Millions of
yen | | Thousands of
U.S. dollars | | Remarks(Millions of yen/ Thousands of U.S. dollars) |
| | | | | | | | | Book value |
| | | | | | | | (1) Land: 87 properties/ 65% of 44,098m2, and 128,282m2 | | ¥ | 20,368 | | $ | 203,299 |
| | | | | |
| | | | | | | | (2) Buildings: 204 buildings/ 95% of 2,242m2, 65% of 846m2, and 105,735m2 (Gross floor area) | | | 15,218 | | | 151,893 |
| | | | | |
| | | | | | | | (3) Equipment: 1,891 items | | | 303 | | | 3,024 |
| | | | | |
| | | | | | | | (4) Petty sum depreciable assets: 149 items (depreciated over three years as prescribed by tax code) | | | 4 | | | 41 |
| | | | | |
| | | | | | | | (5) Key money and other: 1 holding | | | 0 | | | 4 |
| | | |
| | | | | | | | * Accumulated depreciation amounted to ¥20,936 million ($208,965 thousand). |
Accrued Income Receivable | | | 43,468 | | | 433,861 | | | | | | | | |
Accrued Interest on Loans | | | 42,663 | | | 425,822 | | Interest accrued on loans but not yet received at the end of the fiscal year |
Accrued Interest on Securities | | | 703 | | | 7,017 | | Interest accrued on securities but not yet received at the end of the fiscal year |
Accrued Guarantee Fees | | | 102 | | | 1,022 | | Fees accrued on guarantees but not yet received at the end of the fiscal year |
Other Assets | | | 1,511 | | | 15,086 | | | | | | | | | | |
Suspense payments | | | 1,033 | | | 10,317 | | 23 holdings | | | | | | | | |
Guarantee deposits | | | 441 | | | 4,403 | | 73 holdings | | Deposits and guarantees relating to land and buildings leased for business use |
Estimated prepayments | | | 0 | | | 0 | | Estimated payment to the National Treasury |
Other | | | 36 | | | 366 | | 94 holdings | | | | | | | | |
Discounts on Bonds and Notes | | | 4,582 | | | 45,734 | | Difference between face value and proceeds from bonds |
Customers’ Liabilities for Acceptances and Guarantees | | | 173,456 | | | 1,731,276 | | 63 cases | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Assets | | ¥ | 12,743,750 | | $ | 127,195,838 | | |
| | | | | | | | | | | | | | | | |
Note: Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥100.19=$1.00, the effective exchange rate prevailing as of March 31, 2008, has been used in conversion. The presentation of such amounts is not intended to imply that Japanese yen amounts have been or could have been readily translated, realized or settled in U.S. dollars at that rate or any other rate.
22
Development Bank of Japan
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
Development Bank of Japan (“DBJ”) maintains its records and prepares its statutory financial statements in accordance with Development Bank of Japan Law (“DBJ Law”) and the regulations thereunder and in accordance with accounting principles generally accepted in Japan, which are different in certain respects as to the application and disclosure requirements from the International Financial Reporting Standards. The financial statements are not intended to present the financial position and results of operations in accordance with accounting principles and procedures generally accepted in countries and jurisdictions other than Japan.
Consolidated financial statements are not prepared because DBJ has no subsidiaries under the DBJ Law.
The amounts indicated in millions of yen are rounded down by omitting the figures less than one million yen. Accordingly, the sum of each amount appearing in the accompanying financial statements and the notes thereto may not be equal to the sum of the individual account balances.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥100.19=$1.00, the effective exchange rate prevailing as of March 31, 2008, has been used in conversion. The presentation of such amounts is not intended to imply that Japanese yen amounts have been or could have been readily translated, realized or settled in U.S. dollars at that rate or any other rate.
2. Summary of Significant Accounting Policies
(a) Securities
Securities are stated at cost, which is determined by the moving average method.
Under the DBJ Law, DBJ cannot invest surplus funds except in Japanese Government Bonds or other bonds permitted by the DBJ Law, or in deposits at the Fiscal Loan Fund, Bank of Japan or the financial institutions specified by the Ministry of Finance.
(b) Derivatives
Derivative transactions are not recorded on the non-consolidated balance sheets. Income and expenses from derivative transactions are recognized in the non-consolidated statements of income on a cash basis.
(c) Translation of accounts denominated in foreign currencies
DBJ holds foreign currency swaps to hedge exchange rate risks on its loans, bonds and notes that are denominated in foreign currencies. These foreign currency swaps are not recognized in the non-consolidated balance sheets. The foreign currency denominated loans, bonds and notes that are being hedged are measured at the contract rates of the respective foreign currency swaps designated as hedging instruments.
(d) Depreciation method for Premises and Equipment
In accordance with certain provisions set forth in the Corporation Tax Law, depreciation is provided based on the declining balance method for all Premises and Equipment except for buildings and key money, which are depreciated based on the straight-line method.
(e) Discounts on Bonds and Notes
Discounts on bonds and notes are amortized using the straight-line method over the average period of redemption in accordance with an ordinance defined by the Ministry of Finance.
23
(f) Bonds and Notes issuance costs
Bonds and Notes issuance costs are recorded as expenses in the period they are incurred in accordance with a provision defined by the Ministry of Finance.
(g) Allowance for Loan Losses
A provision for loan losses is established in accordance with the requirements set forth by the Ministry of Finance pursuant to the DBJ Law. Under the provision, the allowance for loan losses is limited to 0.3% of loans outstanding at the end of each fiscal year.
(h) Employee retirement benefits
In accordance with the DBJ Law and regulations thereunder, employee retirement benefits to employees (including payment to employees reaching retirement age) are included in DBJ’s budget of revenues and expenditures on the basis of anticipated payments to be made during the relevant year and are included in “Salaries and related expenses” in the non-consolidated statements of income when paid.
(i) Income taxes
DBJ is exempt from taxes based on income, however DBJ is subject to parity taxes of the inhabitants’ taxes among local taxes.
(j) Appropriation of Net Income
In accordance with provisions of the DBJ Law and a related law, DBJ is required to set aside out of net income as a statutory reserve, the larger of (i) an amount equivalent to 20% of net income or (ii) an amount equivalent to 0.3% of loans outstanding at the end of each fiscal year (if this amount is in excess of the amount of net income for the year, then the amount of such net income). The reserve provided may only be used to cover net losses. The balance of net income remaining each year, after providing for this reserve, is to be paid to the National Treasury by May 31 of the following fiscal year. Interim payments are provided for under the Cabinet Order.
As for the fiscal year ended March 31, 2008, the payment to the National Treasury was made, because the amount of net income was in excess of such required amounts.
(k) Consumption tax
Income and expense subject to consumption tax include related consumption taxes paid or received.
3. Cash and Due from banks
Cash and Due from banks as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Cash | | ¥ | 1 | | ¥ | 3 | | $ | 16 |
Due from banks | | | 159,904 | | | 33,975 | | | 1,596,012 |
| | | | | | | | | |
| | ¥ | 159,906 | | ¥ | 33,979 | | $ | 1,596,028 |
| | | | | | | | | |
24
4. Securities
Securities as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Japanese Government Bonds | | ¥ | 277,587 | | ¥ | 344,731 | | $ | 2,770,608 |
Corporate Bonds | | | 81,748 | | | 53,776 | | | 815,933 |
Other securities | | | 8,010 | | | 8,025 | | | 79,955 |
| | | | | | | | | |
| | ¥ | 367,346 | | ¥ | 406,533 | | $ | 3,666,496 |
| | | | | | | | | |
5. Loans
Loans as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Yen loans | | ¥ | 11,517,183 | | ¥ | 12,130,302 | | $ | 114,953,426 |
Direct loans | | | 11,516,398 | | | 12,129,386 | | | 114,945,586 |
Agency loans | | | 785 | | | 915 | | | 7,840 |
Foreign currency loans | | | 59,478 | | | 67,138 | | | 593,659 |
| | | | | | | | | |
| | ¥ | 11,576,662 | | ¥ | 12,197,441 | | $ | 115,547,085 |
| | | | | | | | | |
Pursuant to the DBJ Law and regulations thereunder, loans in arrears are defined as the loans for which the principal payments are overdue by six months or more. This categorization is different from the categorization of non-performing loans as defined under the Banking Law and the Financial Revitalization Law. The amounts of the loans in arrears included in “Loans” on the non-consolidated balance sheets as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Loan past-due for six months or more as to principal payments | | ¥ | 6,590 | | ¥ | 17,841 | | $ | 65,781 |
| | | | | | | | | |
| | ¥ | 6,590 | | ¥ | 17,841 | | $ | 65,781 |
| | | | | | | | | |
6. Premises and Equipment
Premises and Equipment as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | | | | |
| | | Millions of yen | | | Thousands of
U.S. dollars | |
At March 31 | | 2008 | | | 2007 | | | 2008 | |
Premises and Equipment for Business | | ¥ | 56,830 | | | ¥ | 56,357 | | | $ | 567,226 | |
| | ¥ | 56,830 | | | ¥ | 56,357 | | | $ | 567,226 | |
Less- Accumulated Depreciation | | | (20,936 | ) | | | (20,436 | ) | | | (208,965 | ) |
| | | | | | | | | | | | |
Net Book Value | | ¥ | 35,894 | | | ¥ | 35,920 | | | $ | 358,261 | |
| | | | | | | | | | | | |
25
7. Accrued Income Receivable
Accrued Income Receivable as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Accrued Interest on Loans | | ¥ | 42,663 | | ¥ | 48,569 | | $ | 425,822 |
Accrued Interest on Securities | | | 703 | | | 517 | | | 7,017 |
Accrued Guarantee Fees | | | 102 | | | 75 | | | 1,022 |
| | | | | | | | | |
| | ¥ | 43,468 | | ¥ | 49,162 | | $ | 433,861 |
| | | | | | | | | |
8. Other Assets
Other Assets as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Suspense payments | | ¥ | 1,033 | | ¥ | 100 | | $ | 10,317 |
Guarantee deposits | | | 441 | | | 382 | | | 4,403 |
Estimated Payments | | | | | | 1,179 | | | — |
Other | | | 36 | | | 17 | | | 366 |
| | | | | | | | | |
| | ¥ | 1,511 | | ¥ | 1,679 | | $ | 15,086 |
| | | | | | | | | |
9. Long-term Borrowings
DBJ borrows funds from the Japanese Government in order to meet funding requirements for the conduct of operations specified in the DBJ Law. DBJ also accepts other funds received from government sources in order to apply them to the sources of funds necessary to financially contribute to a particular government policy with respect to the operations provided in the DBJ Law, as provided in the Cabinet Order.
Long-term Borrowings as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Fiscal Loan Fund | | ¥ | 6,559,584 | | ¥ | 7,519,403 | | $ | 65,471,450 |
Reserve Funds of the Postal Life Insurance Special Account | | | 29,792 | | | 58,900 | | | 297,355 |
Industrial Investment Special Account | | | 231,067 | | | 269,342 | | | 2,306,295 |
Borrowings from private financial institutions | | | 100,000 | | | | | | 998,104 |
Funds entrusted | | | 12,102 | | | 15,289 | | | 120,794 |
| | | | | | | | | |
| | ¥ | 6,932,546 | | ¥ | 7,862,935 | | $ | 69,193,998 |
| | | | | | | | | |
26
10. Accrued Expenses Payable
Accrued Expenses Payable as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Accrued interest on Bonds and Notes | | ¥ | 7,930 | | ¥ | 6,456 | | $ | 79,150 |
Accrued interest on Long-term Borrowings | | | 28,315 | | | 30,997 | | | 282,619 |
Other accrued expenses | | | 1 | | | 1 | | | 15 |
| | | | | | | | | |
| | ¥ | 36,247 | | ¥ | 37,456 | | $ | 361,784 |
| | | | | | | | | |
11. Other Liabilities
Other Liabilities as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Loan Redemption | | ¥ | 434 | | ¥ | 517 | | $ | 4,334 |
Suspense receipts | | | 492 | | | 1,118 | | | 4,916 |
Unearned income | | | 19,220 | | | 19,546 | | | 191,838 |
Other | | | 121 | | | 37 | | | 1,211 |
| | | | | | | | | |
| | ¥ | 20,268 | | ¥ | 21,219 | | $ | 202,299 |
| | | | | | | | | |
12. Capital
The Japanese Government is the sole owner of the equity interest, which is not evidenced by documents such as stock certificates, but is evidenced at the Registration Office of the Legal Affairs Bureau of Japan.
13. Fees and Commissions (Income)
Fees and Commissions (Income) for the fiscal years ended March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
For the fiscal year ended March 31 | | 2008 | | 2007 | | 2008 |
Commissions received | | ¥ | 4,322 | | ¥ | 2,713 | | $ | 43,148 |
Guarantee Fees | | | 674 | | | 812 | | | 6,734 |
| | | | | | | | | |
| | ¥ | 4,997 | | ¥ | 3,526 | | $ | 49,882 |
| | | | | | | | | |
27
14. Other (Income)
Other (Income) for the fiscal years ended March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
For the fiscal year ended March 31 | | 2008 | | 2007 | | 2008 |
Miscellaneous Interest received | | ¥ | 1,548 | | ¥ | 484 | | $ | 15,460 |
Collection of written-off claims | | | 17 | | | 62 | | | 170 |
Income from Equity Investments | | | 12 | | | | | | 127 |
Other | | | 16,632 | | | 15,145 | | | 166,008 |
| | | | | | | | | |
| | ¥ | 18,211 | | ¥ | 15,692 | | $ | 181,765 |
| | | | | | | | | |
| * | “Other” in above table includes profit of collective investment vehicles, such as limited partnerships, Tokumei Kumiai and other entities with similar characteristic, which amounts to ¥15,414 million ($153,852 thousand) and ¥14,662 million for the fiscal year ended March 31, 2008 and 2007, respectively. |
15. Fees and Commissions (Expenses)
Fees and Commissions (Expenses) for the fiscal years ended March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
For the fiscal year ended March 31 | | 2008 | | 2007 | | 2008 |
Commissions paid | | ¥ | 6 | | ¥ | 14 | | $ | 63 |
| | | | | | | | | |
| | ¥ | 6 | | ¥ | 14 | | $ | 63 |
| | | | | | | | | |
16. Write-off of Claims
DBJ writes-off loans past-due, equity investments and securities which have declined in value drastically, only after exhausting all available remedies including realization on any collateral and disposal by sale of claims. Write-offs are recorded at fiscal year end only with the approval of the Ministry of Finance. The amounts of Loans, Equity Investments and Securities written off for the fiscal years ended March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
For the fiscal year ended March 31 | | 2008 | | 2007 | | 2008 |
Securities written off | | ¥ | 6 | | ¥ | | | $ | 61 |
Loans written off | | | 19,814 | | | 43,331 | | | 197,766 |
Equity Investments written off | | | 15,660 | | | 2,212 | | | 156,310 |
| | | | | | | | | |
| | ¥ | 35,481 | | ¥ | 45,543 | | $ | 354,137 |
| | | | | | | | | |
28
17. Other (Expenses)
Other (Expenses) for the fiscal years ended March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
For the fiscal year ended March 31 | | 2008 | | 2007 | | 2008 |
Miscellaneous Interest paid | | ¥ | 509 | | ¥ | 279 | | $ | 5,089 |
Amortization of Discount on Bonds and Notes | | | 586 | | | 456 | | | 5,851 |
Bonds and Notes issuance cost | | | 1,827 | | | 1,521 | | | 18,239 |
Other | | | 13,704 | | | 1,987 | | | 136,784 |
| | | | | | | | | |
| | ¥ | 16,627 | | ¥ | 4,245 | | $ | 165,963 |
| | | | | | | | | |
| * | “Miscellaneous Interest paid” is mainly composed of payment for credit derivative transactions. |
18. Credit Derivative Transactions
DBJ utilizes credit default swaps as part of its “acceptances and guarantees on customers’ debt” business within the limit of a certain definite amount of risk. Contract values as of March 31, 2008 and 2007 are as follows:
| | | | | | | | | |
| | | Millions of yen | | Thousands of
U.S. dollars |
At March 31 | | 2008 | | 2007 | | 2008 |
Sold | | ¥ | 1,107,506 | | ¥ | 697,877 | | $ | 11,054,066 |
Bought | | | 602,416 | | | 614,827 | | | 6,012,744 |
29
SUPPLEMENTAL INFORMATION OF DEVELOPMENT BANK OF JAPAN
Outstanding Bonds
| | | | | |
| | | | | (Yen amounts
in millions) |
Guaranteed foreign bonds and notes as of March 31, 2008(1): | | | |
| |
Dollar obligations | | | |
6 7/8% | | Guaranteed Bonds Due 2011 ($750,000,000) issued in 1999 | | ¥ | 78,975 |
4.25% | | Guaranteed Bonds Due 2015 ($700,000,000) issued in 2005 | | | 75,768 |
5 1/8% | | Guaranteed Bonds Due 2017 ($900,000,000) issued in 2007 | | | 108,765 |
| | | | | |
Subtotal | | ¥ | 263,508 |
| |
Japanese yen obligations | | | |
1.81% | | Guaranteed Bonds Due 2028 (¥ 25,000,000,000) issued in 1998(2) | | | 25,000 |
1.75% | | Guaranteed Bonds Due 2010 (¥100,000,000,000) issued in 2000 | | | 100,000 |
1.40% | | Guaranteed Bonds Due 2012 (¥75,000,000,000) issued in 2002 | | | 75,000 |
1.70% | | Guaranteed Bonds Due 2022 (¥75,000,000,000) issued in 2002 | | | 75,000 |
1.70% | | Guaranteed Bonds Due 2022 (¥30,000,000,000) issued in 2003 | | | 30,000 |
1.05% | | Guaranteed Bonds Due 2023 (¥75,000,000,000) issued in 2003 | | | 75,000 |
1.60% | | Guaranteed Bonds Due 2014 (¥75,000,000,000) issued in 2004 | | | 75,000 |
2.30% | | Guaranteed Bonds Due 2026 (¥50,000,000,000) issued in 2006 | | | 50,000 |
2.30% | | Guaranteed Bonds Due 2026 (¥25,000,000,000) issued in 2006 | | | 25,000 |
1.75% | | Guaranteed Bonds Due 2017 (¥75,000,000,000) issued in 2007 | | | 75,000 |
| | | | | |
Subtotal | | ¥ | 605,000 |
| |
Euro obligations | | | |
5.625% | | Guaranteed Bonds Due 2011 (EUR 75,000) issued in 2001 | | ¥ | 79,646 |
4.75% | | Guaranteed Bonds Due 2027 (EUR700,000,000) issued in 2007 | | | 114,289 |
| | | | | |
Subtotal | | ¥ | 193,935 |
| |
Total | | ¥ | 1,062,443 |
| | | | | |
| |
Non-guaranteed foreign bonds | | | |
1.65% | | Non-guaranteed Bonds Due 2012 (¥50,000,000,000) issued in 2007 | | ¥ | 50,000 |
| | | | | |
Subtotal | | ¥ | 50,000 |
| |
Total foreign bonds and notes | | ¥ | 1,112,443 |
| | | | | |
30
| | | | | |
| | | | | (Yen amounts
in millions) |
Guaranteed domestic bonds as of March 31, 2008: | | | |
| |
Japanese yen obligations | | | |
1.8% | | Guaranteed Bonds Due 2010 issued in 2000 | | ¥ | 50,000 |
1.9% | | Guaranteed Bonds Due 2010 issued in 2000 | | | 50,000 |
1.8% | | Guaranteed Bonds Due 2010 issued in 2000 | | | 50,000 |
1.6% | | Guaranteed Bonds Due 2011 issued in 2001 | | | 50,000 |
1.4% | | Guaranteed Bonds Due 2011 issued in 2001 | | | 50,000 |
0.8% | | Guaranteed Bonds Due 2013 issued in 2003 | | | 50,000 |
1.3% | | Guaranteed Bonds Due 2014 issued in 2004 | | | 30,000 |
1.8% | | Guaranteed Bonds Due 2014 issued in 2004 | | | 30,000 |
1.3% | | Guaranteed Bonds Due 2015 issued in 2005 | | | 20,000 |
1.4% | | Guaranteed Bonds Due 2015 issued in 2005 | | | 30,000 |
1.6% | | Guaranteed Bonds Due 2016 issued in 2006 | | | 13,000 |
2.1% | | Guaranteed Bonds Due 2021 issued in 2006 | | | 30,000 |
2.0% | | Guaranteed Bonds Due 2016 issued in 2006 | | | 50,000 |
2.1% | | Guaranteed Bonds Due 2021 issued in 2006 | | | 30,000 |
2.0% | | Guaranteed Bonds Due 2021 issued in 2006 | | | 30,000 |
1.8% | | Guaranteed Bonds Due 2017 issued in 2007 | | | 50,000 |
2.1% | | Guaranteed Bonds Due 2022 issued in 2007 | | | 30,000 |
1.9% | | Guaranteed Bonds Due 2017 issued in 2007 | | | 50,000 |
2.1% | | Guaranteed Bonds Due 2022 issued in 2007 | | | 30,000 |
2.0% | | Guaranteed Bonds Due 2022 issued in 2007 | | | 30,000 |
1.6% | | Guaranteed Bonds Due 2018 issued in 2008 | | | 50,000 |
1.9% | | Underwritten Bonds Due 2008 issued in 1998 | | | 2,700 |
1.9% | | Underwritten Bonds Due 2008 issued in 1998 | | | 5,700 |
1.7% | | Underwritten Bonds Due 2008 issued in 1998 | | | 1,300 |
1.8% | | Underwritten Bonds Due 2008 issued in 1998 | | | 10,190 |
1.8% | | Underwritten Bonds Due 2008 issued in 1998 | | | 6,500 |
1.1% | | Underwritten Bonds Due 2008 issued in 1998 | | | 5,000 |
1.1% | | Underwritten Bonds Due 2008 issued in 1998 | | | 4,000 |
1.2% | | Underwritten Bonds Due 2008 issued in 1998 | | | 4,170 |
| | | | | |
Subtotal | | ¥ | 842,560 |
31
| | | | | |
| | | | | (Yen amounts
in millions) |
Non-guaranteed domestic bonds | | | |
1.23% | | Non-guaranteed Bonds due 2012 issued 2002 | | ¥ | 50,000 |
0.78% | | Non-guaranteed Bonds due 2013 issued 2003 | | | 60,000 |
0.40% | | Non-guaranteed Bonds due 2008 issued 2003 | | | 50,000 |
1.58% | | Non-guaranteed Bonds due 2013 issued 2003 | | | 50,000 |
1.17% | | Non-guaranteed Bonds due 2010 issued 2003 | | | 20,000 |
1.83% | | Non-guaranteed Bonds due 2018 issued 2003 | | | 10,000 |
0.68% | | Non-guaranteed Bonds due 2009 issued 2004 | | | 50,000 |
1.59% | | Non-guaranteed Bonds due 2014 issued 2004 | | | 50,000 |
0.99% | | Non-guaranteed Bonds due 2009 issued 2004 | | | 50,000 |
0.64% | | Non-guaranteed Bonds due 2008 issued 2004 | | | 30,000 |
1.52% | | Non-guaranteed Bonds due 2014 issued 2004 | | | 50,000 |
1.05% | | Non-guaranteed Bonds due 2011 issued 2004 | | | 20,000 |
0.62% | | Non-guaranteed Bonds due 2010 issued 2005 | | | 40,000 |
1.40% | | Non-guaranteed Bonds due 2015 issued 2005 | | | 50,000 |
1.70% | | Non-guaranteed Bonds due 2020 issued 2005 | | | 10,000 |
0.57% | | Non-guaranteed Bonds due 2010 issued 2005 | | | 50,000 |
0.92% | | Non-guaranteed Bonds due 2011 issued 2005 | | | 30,000 |
0.77% | | Non-guaranteed Bonds due 2009 issued 2005 | | | 20,000 |
1.65% | | Non-guaranteed Bonds due 2015 issued 2005 | | | 40,000 |
1.41% | | Non-guaranteed Bonds due 2011 issued 2006 | | | 35,000 |
1.40% | | Non-guaranteed Bonds due 2011 issued 2006 | | | 80,000 |
1.98% | | Non-guaranteed Bonds due 2016 issued 2006 | | | 20,000 |
1.30% | | Non-guaranteed Bonds due 2011 issued 2007 | | | 50,000 |
1.86% | | Non-guaranteed Bonds due 2016 issued 2007 | | | 20,000 |
1.93% | | Non-guaranteed Bonds due 2019 issued 2007 | | | 10,000 |
2.63% | | Non-guaranteed Bonds due 2036 issued 2007 | | | 20,000 |
1.33% | | Non-guaranteed Bonds due 2012 issued 2007 | | | 40,000 |
1.80% | | Non-guaranteed Bonds due 2017 issued 2007 | | | 25,000 |
2.67% | | Non-guaranteed Bonds due 2037 issued 2007 | | | 15,000 |
2.74% | | Non-guaranteed Bonds due 2047 issued 2007 | | | 20,000 |
2.23% | | Non-guaranteed Bonds due 2027 issued 2007 | | | 10,000 |
1.55% | | Non-guaranteed Bonds due 2014 issued 2007 | | | 10,000 |
1.27% | | Non-guaranteed Bonds due 2012 issued 2007 | | | 20,000 |
1.75% | | Non-guaranteed Bonds due 2017 issued 2007 | | | 20,000 |
1.22% | | Non-guaranteed Bonds due 2012 issued 2007 | | | 20,000 |
1.73% | | Non-guaranteed Bonds due 2017 issued 2007 | | | 20,000 |
2.25% | | Non-guaranteed Bonds due 2027 issued 2007 | | | 10,000 |
1.10% | | Non-guaranteed Bonds due 2013 issued 2008 | | | 20,000 |
1.63% | | Non-guaranteed Bonds due 2017 issued 2008 | | | 10,000 |
| | | | | |
Subtotal | | ¥ | 1,205,000 |
| |
Total domestic bonds | | ¥ | 2,047,560 |
| | | | | |
Total bonds | | ¥ | 3,160,003 |
| | | | | |
| (1) | The actual foreign currency amounts of obligations are set forth in parentheses (in thousands of units of foreign currency) for foreign borrowings. Translations of actual foreign currency amounts into yen amounts have been made in accordance with the method stated in Note 1 of “Notes to Non-consolidated Financial Statements”. |
| (2) | These bonds have put options which can be exercised by investors in 2008, 2013, 2018 and 2023. |
32
