---
title: "Kitao's bond liberalisation play"
description: "How SoftBank refinanced a $500m bank loan and broke the main-bank system."
canonical: https://tomsharman.com/bookshelf/gambling-man/kitaos-bond-liberalisation-play/
updated: 2026-11-03
---

# 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.

Framework 3 of 8 from [Gambling Man](https://tomsharman.com/bookshelf/gambling-man/index.md) by Lionel Barber. Category: AI.

## The steps

1. **Spot the rule change.** Use the 1993 revision to the Commercial Code that let firms issue bonds through a nominated financial agent.
2. **Choose a friendly agent.** Appoint Nomura Securities as fiscal agent, cutting out the major banks.
3. **Win the regulator.** Lobby the Ministry of Finance until it sided with liberalisation, which cut fees by 90 per cent.
4. **Issue the bond.** Sell 12-year debentures at 3.9 per cent in September 1995 to raise $500m and repay the syndicated loan.
5. **Rank the banks.** Replace a main bank with a core bank system and score each bank on willingness to accommodate SoftBank.

## Where it comes from

From chapter: PART TWO: RISE AND FALL, pp. 66–147

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/kitaos-bond-liberalisation-play.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/kitaos-bond-liberalisation-play-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/kitaos-bond-liberalisation-play.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/kitaos-bond-liberalisation-play-dark.png