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Financial Platform

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Example 3: Business Revitalization
Since the late 1990s, which were characterized by an increasing number of bankruptcies and underperforming companies, the bad-debt issue and financial system uncertainty have beleaguered the Japanese economy, but the redistribution of resources has played a key role in its reinvigoration. We believe that our creation of a framework to support underperforming companies in developing and maintaining valuable areas of business has helped resolve these issues, and that our myriad tools have supported business revitalization. One such tool is early debtor-inpossession (DIP) financing, which provides funding to companies that have filed for bankruptcy protection in the period while their revitalization plans are being reviewed. Another tool is business revitalization funds, which support capital restructuring by acquiring shares in underperforming companies. We also provide exit financing, which provides companies that are restructuring with the cash to operate as ordinary companies.
Example 4: Environmental and Disaster Response
From early on, DBJ has supported efforts aimed at achieving harmony with the environment and creating a safe and secure society. In fiscal 2005, we introduced a system for promoting environmentally conscious management. This financing method uses a DBJ-developed screening system to score companies on their degree of environmentally conscious management. Companies that score particularly well in these ratings are offered preferential interest rates at three levels depending on their rating. This environmental rating system is the first such financial certification system in the world. Furthermore, in fiscal 2007 we introduced a loan program for promoting disaster management. This financing system is a proprietary rating system based on the Japanese Cabinet Office Central Disaster Prevention Council's Self-Evaluation Indicators of Corporate Initiatives on Disaster Prevention. In this new financing method, we use our specialized disaster prevention ratings to evaluate corporate disaster response activities and offer preferential financing to companies involved in disaster response businesses.
Example 5: EQ-LINE
As awareness of the need for disaster preparedness grows among Japan's leading corporations, an increasing number of companies are creating business continuity plans. In the past, companies had few options in preparing for the financial impact of earthquakes other than to take out earthquake insurance. As an alternative, DBJ is creating EQ-LINE, which allows companies to reserve financing to become available in the event of a large-scale earthquake.
EQ-LINE is designed to provide financing that enables companies that sign up for such financing beforehand to continue operating even if impacted by an earthquake (of a specified magnitude) and to rebuild in the wake of such an earthquake. In this sense, EQ-LINE is a type of risk financing that effectively provides companies with a degree of certainty that they will be able to continue business. Creating this system requires the evaluation of earthquake risk, and collaboration to create a system of funding for access when an earthquake strikes. DBJ is working with Mitsubishi UFJ Trust and Banking Corporation, Nikko Citigroup Limited and several other partner companies to formulate an appropriate scheme that will operate efficiently.

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