News Release
April 1, 2014
Capital Eye Ltd.

BEST DEALS OF 2013 Awards Selection:
NTT DOCOMO’s Straight Bond, Suntory’s IPO
On April 1, Capital Eye Ltd. announced its Awards “BEST DEALS OF 2013”. The honors reflect the results ofsurveyed responses from securities companies and institutional investors, combined with Capital Eye’s
editorial judgment, in determining the most outstanding issuers of bond and equity transactions of the 2013
fiscal year (April 2013 to March 2014).
In the straight bond category, deals that braved an era of unprecedented monetary easing stood out. Amongstraight corporate bonds, NTT DOCOMO’s highly rated 10-year paper established the benchmark standard
despite slack supply and demand conditions. Among zaito, or agency bonds, Japan Housing Finance Agency
took top honors with its 30-year paper, while Japan Finance Organization for Municipalities (JFM) won honors
for upping the issuer ante. Among Samurai issuers, France’s Banque Fédérative du Crédit Mutuel (BFCM)
garnered platitudes with its large offer, while domestic issuers SoftBank Corp. and Central Japan Expressway
also earned high praise.
In the new equity issue category, Suntory Beverage & Food Ltd.’s IPO deal made an impression with its namerecognition and deal size, while CYBERDYNE Inc. also won for its innovative business and listing scheme.
Among follow-on public offers (POs), MITSUBISHI MOTORS concluded its rebirth phase with a successful
cash-raising offer, while DENTSU impressed overseas investors with its growth plan. In the convertible bond(CB) market, THE SHIZUOKA BANK became the first Japanese bank to print dollar-denominated paper, while
department store operator Takashimaya was the first to publish a negative yielding 7-year tranche. Amongactive capital raising J-REITs, IPOs from both Hulic Reit and Aeon REIT Investment received high marks,
while Nippon Prologis REIT produced its second global offering, winning the award for best issuer.

STRAIGHT BONDS
Best Deal-WinnerNo. 20 NTT DOCOMO

Nov 15, 201310-year

Y50bn〈Nomura / Mitsubishi UFJ Morgan Stanley / Mizuho / Goldman Sachs / SMBC Nikko〉
Appearing in a new era of unprecedented monetary easing, falling interest rates and slack supply anddemand conditions, NTT DOCOMO’s 10-year offer was selected as the top corporate deal with its appropriate
spreads, and for helping to making the environment generally more deal-friendly for future issuers. By wisely
eschewing the longstanding practice of aiming for a single-digit pricing over sovereign bonds, DOCOMO’s
paper ended at a level of 13bps over the benchmark, but gaining the support of a broad swathe of investors.
Appearing in a time when smaller deals were proliferating, the Y50 billion benchmark-sized offer was an
unqualified success.

Best Deal-Runner-up
No. 44 SoftBank Corp.

Nov 22, 2013

7-yearY50bn〈Mizuho / SMBC Nikko / Daiwa / Nomura / Mitsubishi UFJ Morgan Stanley〉
SoftBank’s single-A class, seven-year Y50 billion offer was largest of its kind since the 2008 Lehman Shock,leaving the impression that credit markets had perhaps returned to a robust state. Funds from the deal were
earmarked for an aggressive, large M&A purchase by the company. A credit downgrade had already been
priced into the deal, however, engendering a sense of ease and luring investor buying.
Special Prize
No. 54 TOSHIBA CORPORATION

May 24, 2013

3-year

Y20bn

No. 55 TOSHIBA CORPORATION

May 24, 20135-yearY60bn

No. 56 TOSHIBA CORPORATION

May 24, 2013

7-year

Y10bn〈Nomura / Mizuho / Daiwa / SMBC Nikko〉
TOSHIBA’s offer was issuing tonic for the consumer electronics making sector, itself beset with red ink at thetime. Aggressively taking advantage of the industry’s decline, TOSHIBA essentially drew the line for its peers,
coming quickly with its large-scale, combined Y90 billion transaction, and afterwards establishing a good
momentum in the market.
Special Prize
No. 102 TOBU RAILWAY

Oct 17, 201312-year

Y10bn〈Mizuho〉

TOBU’s Y10 billion transaction represented the first super-long straight bond offer by a Japanesecompany whose credit rating is single-A minus and below in two years, and its first super-long paper insixteen-and-a-half years. The opening of the company’s iconic TOKYO SKY TREE allowed for credit
upgrades in January and in April 2013. These, along with the firm’s brand appeal, enabled the 12-year
deal to become possible, and helped push demand to twice the issuing amount.
Best Issuer of 2013
SoftBank Corp.
Despite a credit rating cut and worsening financials and other negative conditions, SoftBank managed tocome to market with a large-scale deal that calibrated spreads appropriately with risk, producing another in astring of consistently successful transactions. The company displayed active, dexterous handling of not only
the domestic institutional investor-oriented tranche of paper but also the overseas tranche, earning plaudits.
SoftBank was able to print Y400 billion worth of bonds of individual investors in June--its largest-everissue--as it made ample use of its strong name recognition. It also produced Y50 billion in paper for
institutions, and the equivalent of a total of $3.3 billion in dollar- and euro denominated bonds.

ZAITO (AGENCY) BONDS
Best Deal-WinnerNo. 135 Japan Housing Finance Agency

May 21, 2013

〈Mitsubishi UFJ Morgan Stanley / Nomura / SMBC Nikko〉

230-year

Y30bn

In the non-government guaranteed paper market, Japan Housing Finance Agency’s 30-year offer represented
the vanguard. Amid unprecedented monetary easing, heightened market volatility and softening demand in
the super-long zone, deal managers were able to spot the big-ticket interest where it did exist, resulting in a
successful, large-scale Y30 billion issue, which also helped to positively influence other transactions that
followed.
Special Prize
No. 40 Development Bank of Japan

Nov 6, 20138-yearY20bn〈Mizuho〉
Facing investors sensitive to interest rate risk and preferring floating-rate paper, Development Bank of Japan(DBJ) found a way to get its deal done as market conditions permitted, at issuing costs largely the same aswith its customary fixed-rate paper, and its bonds were readily digested. In a market punctuated byunprecedented monetary easing and heightened volatility, DBJ was able to find a solution in order tosuccessfully navigate the rough seas. The issue was the first floating-rate bond from a higher than double-A
rated issuer or a zaito issuer.
Best Issuer of 2013
Central Nippon Expressway Company
Central Nippon Expressway Company (Nexco Central) produced its largest single-tranche bond transaction, a
five-year, Y70 billion deal, in all printing a total of Y195 billion in domestic paper. By focusing on
communication with investors, deal management and appropriate tenor space, Nexco Central’s are always
readily digested. It also printed the first euro-dollar bond for road-building firm, equivalent to Y100 billion.

REGIONAL BONDS
Best Deal-WinnerNo. 54 Japan Finance Organization for Municipalities

Nov 13, 201310-year

Y20bn〈Nomura / Shinkin〉
Best Issuer of 2013
Japan Finance Organization for Municipalities
Investors welcomed JFM’s efforts in allowing pricing spreads its 54th bond offer, a 10-year deal, to expand
with prevailing market conditions. And, with the entire deal syndicate effectively suppressing the transactions
size, it was able to capture overwhelming investor demand. In the process, JFM also regained the trust of themarket. Up to that point, the market was trapped in a downward spiral of soft supply and demand conditions,tight issuing terms, slack sales, surplus investors, and secondary market widening. But JFM’s offer effectively
put an end to that.
Buyers also welcomed the 20-year paper to move in line with prevailing market conditions. JFM’s
implementation of the FLIP（Flexible Issuance Program） feature, which offers flexibility in dealmaking in order
to better meet investor needs, enabled great success for its two-year paper, as well as its subsequent two
15-year deals. In all, the agency raised some Y1 trillion in non-government guaranteed bonds over the courseof the year. It also put $1.5 billion worth of paper into the overseas market via a global offer—its mostever—while making nimble use of the MTN market as well.

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Special Prize
No. 11 Kyoto Prefecture

Oct 25, 2013

Redemption 20-year

Y10bn〈Daiwa〉
Kyoto Prefecture’s transaction was the first publicly offered regular ‘redemption bond’. By making the deal apublic offer, Kyoto was able to expand the investors base, increasing the offer’s transparency. The paper was
readily digested by buyers seeking yield.

SAMURAI BONDS
Best Deal-WinnerNo. 23 General Electric Capital Corporation

Sep 12, 2013

3-year

Y72.1bn

No. 24 General Electric Capital Corporation

Sep 12, 2013

7-year

Y7.4bnNo. 25 General Electric Capital Corporation

Sep 12, 201310-yearY11.1bn

FRN No. 5 General Electric Capital Corporation

Sep 12, 2013

3-year

Y4.4bn〈Mitsubishi UFJ Morgan Stanley / SMBC Nikko〉
General Electric Capital Corporation (GECC) eschewed orthodoxy as it faced volatility overseas and at homeas it prepared its intended five-year offer. The firm instead opted for a base three-year tranche to build afour-pronged offer worth a total of Y95 billion. The strengths of GECC’s reputation, as well as the relative
scarcity of overall corporate paper in the Samurai market, allowed for precise tenor selection. The deal wasable to capture ample demand as the issue paid careful attention market input, resulting in a modeltransaction. For GECC, the deal was its first Samurai since November 2011.
Best Deal-WinnerNo. 7 Banque Fédérative du Crédit MutuelOct 11, 2013

2-year

Y46.1bn

No. 8 Banque Fédérative du Crédit MutuelOct 11, 2013

3-year

Y22.8bn

No. 9 Banque Fédérative du Crédit MutuelOct 11, 20135-yearY24bn

FRN No. 2 Banque Fédérative du Crédit MutuelOct 11, 2013

2-year

Y7.8bnFRN No. 3 Banque Fédérative du Crédit MutuelOct 11, 2013

3-year

Y4.8bnFRN No. 4 Banque Fédérative du Crédit MutuelOct 11, 20135-year

Y2.6bn〈Daiwa / Mizuho / Nomura〉
Best Issuer of 2013
Banque Fédérative du Crédit MutuelDespite being the only double-A rated French bank, Banque Fédérative du Crédit Mutuel (BFCM) was unable
to capture investors’ attentions in two previous deals, raising just Y20 billion. In fiscal 2013, however, BFCM
followed Rabobank in generating Y175.3 billion in supply for the market, in the process extracting some‘revenge’ for its past troubles. The bank made use of continuous IR work to produce fruitful communications
with investors, resulting in a successful leap back into the Samurai market as a main player. Investors were
especially appreciative of the BFCM’s flexibility in setting the tenors for its offer. That attention to detail played
a role in allowing for a mammoth, Y100 billion deal size for its October offer. Coming back to the market thefollowing March--unfazed by the approaching fiscal year-end--it was able to print nearly Y70 billion more inpaper, proving that its first transaction was certainly no fluke.

4Best Issuer of 2013
Rabobank
Rabobank earned the title of Best Issuer for the fourth year in a row. The bank raised Y190.6 billion in fiscal
2013, flexing its muscles as a central player in this market. The May issue, which came amid unprecedented
Japan central bank easing and volatile underlying market conditions, was blessed with careful marketing thatgarnered over Y100 billion in demand and paving the way for subsequent deals as well. In the firm’s
November transaction, it used a twin-bookrunner system. The bank was lauded for its careful attention toinvestor needs when setting its tenor and other aspects of the deal specs. Rabobank nevertheless waspraised for its sterling, stable handling of routine Samurais.

SECURITIZATION DEALSBest Deal-Winner
JRE Mega Solar Project Bond Trust 1

Sep 30, 2013

Y1330mil〈Arranger: Goldman Sachs>
JRE Mega Solar Project’s transaction was the first Japanese attempt to raise capital for the purpose offunding a solar powered electricity generating plant. As an infrastructure/project finance deal, it was the first
rated securitized product. It also carried significance as a new product with the appeal of potential long-term
stability and dependable management. The deal was the first in a series of forthcoming offers from the issuer.

FOREIGN CURRENCY BONDS
Best Deal-Winner
SoftBank Corp.

Apr 18, 2013

7-year

$2.485bn〈Deutsche / Bank of America Merrill Lynch / Crédit Agricole / Mizuho / Morgan Stanley / Nomura〉
SoftBank Corp.

Apr 18, 2013

7-yearEuro625mil〈Deutsche / Crédit Agricole / Mizuho / Nomura〉
SoftBank was able to navigate through a credit downgrade to double-B due to its planned buyout of No. 3 U.S.
wireless carrier Sprint Corp., tapping the global bond market with a substantial high-yield bond deal. With deft
IR handling of its credit story, the offer met with warm reception by a wide swathe of investors. SoftBank chief
executive Masayoshi Son impressed the market with his strong commitment and his company’s performancein the mobile phone business. In all, the company raised the equivalent of $3.3 billion through dollar- andeuro-dominated tranches. The deal ended up as the largest Japanese corporate bond ever produced.
Best Deal-Winner
The Bank of Tokyo-Mitsubishi UFJ

Mar 4, 2014

3-year$1bn

The Bank of Tokyo-Mitsubishi UFJ

Mar 4, 20145-year$1bn

The Bank of Tokyo-Mitsubishi UFJ

Mar 4, 201410-year$750mil

The Bank of Tokyo-Mitsubishi UFJ

Mar 4, 201430-year$400mil

The Bank of Tokyo-Mitsubishi UFJ

Mar 4, 2014

FRN 3-year$850mil〈Morgan Stanley / Mitsubishi UFJ / Bank of America Merrill Lynch / JPMorgan〉

5The Bank of Tokyo-Mitsubishi UFJ’s offer was well-timed, taking advantage of the switch back to ‘risk-on’mood that followed a spike in geopolitical tension over Ukraine and Russia. In skillfully navigating the market,
the deal was able to evoke a good response from investors, and at a total of $4 billion, ranked as the largest
offer of its kind from any Japanese or non-U.S. bank. In the end, some $15 billion in demand greeted the deal.
The bank also elevated its presence in the market as super long-term investors snapped up its 30-year paper,
the first such tranche of its kind for a plain bond Japanese issuer.
Special Prize
Mizuho Financial Group(Cayman) 3 Limited

Mar 20, 201410-year$1.5bn〈Mizuho / Bank of America Merrill Lynch / Goldman Sachs / JPMorgan〉
Borne out of conformity to fresh Basel III rules governing international banks, Mizuho Financial Group’s(MFG) “B3T2” subordinated bond transaction was the first of its kind from a Japanese lender. MFG’s IR unit
was able to deftly explain how Japan’s laws governing bank failures function, and ultimately succeeded indeepening investor understanding. The deal garnered strong demand, resulting in tighter spreads as it
finished. The offer also set a de facto benchmark role for other Japanese lenders.
Best Issuer of 2013
Japan Bank for International Cooperation
Japan Bank for International Cooperation (JBIC), the standard-bearer for a truly representative Japaneseissuer name, came to market with a laudable transaction in July, 2013. The deal’s launch, in the immediate
aftermath of predictions that the U.S. Federal Reserve Bank would embark on fiscal stimulus tapering, metwith strong investor buying appetite, and re-opened the public-sector 10-year zone. Combined with afive-year tranche, the total deal amount came to a whopping $3.5 billion. In November, JBIC added a five-year
floating rate note to a regular five-year fixed rate bond, launching a $2.5 billion deal at a tighter spread. Also in
February 2014, JBIC launched its first U.K. pound-denominated bond deal in 17 years, aimed at financing U.K.
high-speed expressway infrastructure, as for renewable energy projects sponsored by Japanese firms.

NEW PUBLIC EQUITY ISSUES/URIDASHIBest Deal-WinnerSuntory Beverage & Food
Jul 3, 2013 (Listing date)〈Nomura / Morgan Stanley MUFG / JPMorgan〉

Public Issue/Uridashi
Total shares: 119,000,000

Total amount: Y368,900mil
Suntory Beverage & Food's offer was the largest overall stock deal of the fiscal year, and the largest
non-privatization deal since 1998. The firm deftly used a clear description of its intended use of funds, as wellas its brand power and its solid reputation to spread share distribution widely. Sensitive pricing of the shares
to consider underlying market conditions allowed for solid post-listing performance as well.
Best Deal-Runner-up
PeptiDream〈Mizuho〉

Jun 11, 2013 (Listing date)Public Issue/Uridashi
Total shares: 2,700,000

Total amount: Y6,750mil
PeptiDream, which is involved in the discovery and development of nonstandard peptide therapeutics,
enjoyed the big distinction of being profitable, as well as for sporting an outlook for rapid growth. The two6qualities stood in contrast to the standard image of a “bioventure”, enabling it to garner high appraisal.
Through cooperative relationships with domestic and international pharmaceutical firms, PeptiDream’s
business model was geared for profitability well before listing—to the delight of investors.
Special PrizeCYBERDYNE〈SMBC Nikko〉

Mar 26, 2014 (Listing date)Public Issue/Uridashi
Total shares: 2,117,700

Total amount: Y7,835.49mil
CYBERDYNE Inc. impressed investors with its win of EU approval for its Hybrid Assistive Limb (HAL) robot
suit, by which a wearer‘s bodily functions can be improved, supported and enhanced. The cutting-edge natureof its business, as well as the innovative, multiple voting rights scheme employed in its IPO—the first from aJapanese issuer--earned its debut offer high praise from critics.
Best Issuer of 2013
No selection

SECONDARY PUBLIC EQUITY ISSUES/URIDASHIBest Deal-Winner
DENTSU〈Nomura / Morgan Stanley MUFG〉

Jul 22, 2013

Public Issue
Total shares: 37,000,000

Total amount: Y118,067mil
DENTSU used its offer for the explicit purpose of raising cash to pay for its acquisition of major U.K. ad firm
Aegis Group plc. As the global advertising industry is relatively mature, DENTSU was able to clearly explain
its equity story of pursuing growth by M&A to investors who were impressed with the company’s ambitions.
The deal succeeded in attracting a book of high-quality investors both domestically and abroad.
Best Deal-Winner
MITSUBISHI MOTORS CORPORATIONJan 22, 2014
〈Morgan Stanley MUFG / Nomura / Merrill Lynch Japan〉

Public Issue
Total shares: 217,750,000
Total amount: Y243,880mil

MITSUBISHI MOTORS’ public issue was part of the company’s ambitious plan of rebirth. The deliberate anddetailed transaction, designed to raise capital for restructuring, was able to garner the market’s understanding,and met with strong demand both domestically and overseas. It was also praised for shifting part of thedomestic retail portion of the deal, ”testimony to its success.” The transaction was the largest public capitalincrease stock offer of the year.
Best Issuer of 2013
No selection

REAL ESTATE INVESTMENT TRUSTSBest Deal-Winner
Hulic Reit
〈Mizuho / Nomura〉

Feb 7, 2014 (Listing date)Public Issue
Total shares: 617,500
Total amount: Y66,690mil

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Hulic Reit’s IPO sported a property portfolio worth over Y100 billion, consisting not only of free-standingcity-based office buildings, but also for-profit care facilities for the elderly. The mix of assets lent the REIT abalance of stability and growth potential that definitely had appeal, as nearly all interested investors actuallyparticipated in the deal. Investors also liked Hulic’s low-leverage IPO for the prospects that dividend payouts
might eventually be raised.
Best Deal-Runner-up
AEON REIT Investment〈Nomura / Mizuho〉

Nov 22, 2013 (Listing date)Public Issue
Total shares: 900,000

Total amount: Y94,500mil
AEON REIT Investment, which contains the high-profile AEON LakeTown assets, also boasted the distinctionof being the only domestic REIT with the forward-looking stance of having picked up foreign-locatedproperties. Post-listing share price performance was also strong.
Best Issuer of 2013
Nippon Prologis REIT
Nippon Prologis REIT came to market after its IPO in February 2013, successfully executing its two global
offerings, with the ultimate goal of purchasing A Class properties from Prologis Group. In terms of quality, theproperties sought were highly evaluated, and the issuer played a central role in the market’s “Distribution
facility boom” while contributing to the revitalization of the J-REIT sector.

CONVERTIBLE BONDS
Best Deal-Winner
THE SHIZUOKA BANK Euro$ CB

Apr 9, 20135-year

US$500mil〈Nomura / Goldman Sachs〉
SHIZUOKA BANK’s offer was the first dollar-denominated convertible bond deal from a Japanese bank, andalso the first zero-coupon dollar bond ever issued from a Japanese company. As such, the transaction’s
significance as a path breaker was large in the modern era of globalization, and is likely to pave the way forsimilar future deals. Combined with the bank’s plans to buy back its own shares and cash settlement
provisions, the offer was lauded as having set “better terms for a dollar deal than megabank”.
Best Deal-Runner-up
Takashimaya Company Euro Yen CB

Nov 26, 20135-yearY40bn

Takashimaya Company Euro Yen CB

Nov 26, 2013

7-yearY25bn〈Morgan Stanley / Citigroup〉
Takashimaya’s two-tranche, a five- and seven-year offer was intended to fulfill its goal of splitting its
redemption periods. The seven-year portion of the deal was significant as the first negatively-yielding tranche
since the 2008 Lehman Shock. The offer drew praised in light of the consideration it showed to investors overpricing and for its clearly articulated plans for the use of the funds: to buy the high-profile Takashimaya Times
Square building in Tokyo.
BEST ISSUER OF 2013
No selection8About Capital Eye awards:
Capital Eye’s awards recognize the year’s best and most reputable capital market transactions. Surveys are
distributed to industry players, including underwriters and institutional investors, which assist in identifying
worthy issuers and transactions, along with relevant asset classes: straight bonds, zaito (agency) bonds,
regional bonds, Samurai bonds, foreign currency bonds (Japanese corporations issuing debt abroad), andsecuritized offers, as well as new share issues, existing share issues, J-REITs, and convertible bonds, etc.
Transactions are also appraised by Capital Eye editors on such aspects as market digestion, significance andrelevance, towards promoting further activity.

About Capital Eye Limited
Representative:

Kazuko Takada

Address:

101-0065 Tokyo-to, Chiyoda-ku, Nishi Kanda 3-1-6
Nihon Kodokai Bldg, 2F

Establishment:

July, 2006

Capital:Y80,000,000

Business:

Financial service product provider, specializing in real-time (online) and published capital
markets intelligence and analyses (Capital Eye News) geared for industry professionals.
Fixed income coverage includes corporate bonds, zaito (agency) bonds, government
guaranteed bonds, secondary market activity, as well as credit default swaps andcorporate paper. Equities coverage includes corporate issuance, REITs, and convertible
bonds, as well as mergers and acquisitions (M&A) and stock lending-related news andanalyses.

Inquiries:
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Takeshi kikuchi: 03-6826-4721

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