Gambling Man by Lionel Barber, framework 3 of 8
Kitao's bond liberalisation play
How SoftBank refinanced a $500m bank loan and broke the main-bank system.
Lionel Barber's framework, from Gambling Man, pp. 66 to 147.
- Spot the rule change
Use the 1993 revision to the Commercial Code that let firms issue bonds through a nominated financial agent.
- Choose a friendly agent
Appoint Nomura Securities as fiscal agent, cutting out the major banks.
- Win the regulator
Lobby the Ministry of Finance until it sided with liberalisation, which cut fees by 90 per cent.
- Issue the bond
Sell 12-year debentures at 3.9 per cent in September 1995 to raise $500m and repay the syndicated loan.
- Rank the banks
Replace a main bank with a core bank system and score each bank on willingness to accommodate SoftBank.
From chapter: PART TWO: RISE AND FALL, pp. 66–147
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