#Japan #Tokyo #Corporate Bonds #Startup Investment #Siiibo Securities

Siiibo Securities Boosts Financing through Corporate Bonds

Siiibo Securities Co., Ltd., based in Chuo Ward, Tokyo, is leading a charge in the corporate bond market by raising approximately 2 billion yen in total funding. This financial achievement was made possible through third-party allotment financing from several partners, including Aozora Corporate Investment, 15th Rock, and FINOLAB No. 1 Investment Limited Partnership.

With this new capital, Siiibo plans to launch the "Omatome Bond," a new product that allows investors to diversify their investments into corporate bonds. This initiative aims to increase the issuance of corporate bonds for businesses, thus facilitating their funding processes.

Market Context: Interest Rates Rising

The current economic landscape has shifted into a "world of interest rates" due to recent hikes, driving interest among investors towards income-generating investments such as corporate bonds. Companies are recognizing the flexibility of corporate bonds as a funding option, with issuance expected to reach a record-breaking 15.7 trillion yen in 2024, influenced by pre-rate-hike activity and market momentum.

Additionally, investments in private assets have gained attention. These opportunities, previously limited to institutional investors, are now expanding to individual investors, allowing for greater participation in the startup ecosystem. The government sees diversification in fundraising for unaffiliated companies as a crucial part of its growth strategy, with initiatives from the Japan Securities Dealers Association and the Financial Services Agency supporting personal funds flowing into risk capital.

Taking advantage of these changing dynamics, Siiibo Securities aims to develop a platform that connects individual investors directly with startups, predominantly through corporate bonds.

Future Outlook: Targeted Initiatives

With the recent financing, Siiibo is set to enhance its offerings for both investors and businesses.

• - For Investors: The company will increase the availability of "Omatome Bonds," having launched this concept in February. This product aggregates multiple unaffiliated companies’ bonds, allowing for diversified investments across five to twenty different entities with a single purchase, promising consistent transparency regarding the financial status of invested companies. With average interest rates of 2 to 8% in yen, the bonds are designed to attract investors seeking options beyond traditional avenues. Since its inception, positive feedback reflects the allure of supporting multiple startups through diversified bonds. Moreover, "Omatome Bonds" will provide independent investment opportunities, overcoming the constraints of conventional bond issuance timing, thereby facilitating a more liquid trading environment.
• - For Companies: The additional financing not only enhances bond purchasing opportunities for investors but also streamlines the funding process for businesses. Siiibo Securities is set to introduce a new service aimed at making bond issuance easier for companies, fostering an environment that's conducive to successful fundraising while allowing businesses to focus on their core operations.

About Siiibo Securities

Siiibo Securities, founded with a mission of "freedom, transparency, and fairness," operates an online platform for issuing and purchasing corporate bonds. Leveraging a method of private solicitation, Siiibo directly connects issuing companies needing funds with potential investors. This innovative approach stands as Japan's only online brokerage specializing in bonds, affording investors the ability to navigate the current market without incurring the risk of currency fluctuations.

Through flexible bond issuance, companies can adapt their funding requirements without diluting their management control, making corporate bonds a strategic choice for growth capital, including M&A activities.

Siiibo Securities is dedicated to expanding the untapped bond market while pushing towards a more democratized financial environment.

Partners Weigh In

Various partners expressed confidence in Siiibo Securities' innovative approach:

• - Aozora Corporate Investment: CEO Akira Kubo remarked on Siiibo’s role in activating the underdeveloped "private bond market" and achieving additional product development.
• - 15th Rock: Principal Kō Hayasaki highlighted the company’s commitment to building an unprecedented direct financial platform.
• - FINOLAB: Chief Investment Officer Takeshi Kobara emphasized the importance of expanding investment opportunities for individual investors.
• - Pacific Bays Capital: Co-founder Koji Muto appreciated Siiibo’s role in creating new investment opportunities in line with global trends.

Conclusion

Siiibo Securities expresses gratitude for the support received from its partners, which will enable them to implement improvements such as enhanced availability of "Omatome Bonds" and opportunities for larger-scale corporate bond issuance. The company continues to welcome new talent eager to innovate within the bond market, embodying their commitment to a unique investment experience.

For more details on Siiibo Securities and their latest offerings, visit Siiibo.