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Japanese Life Insurers Team Up To Raise Capital

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NU Online News Service, July 5, 1:35 p.m. –Yasuda Mutual Life Insurance Company Ltd., Tokyo, and Fukoku Mutual Life Insurance Company, Tokyo, have agreed to join to raise ?4.6 billion, or about $40 million, through securitization, according to Yomiuri Shinbun, a Japanese daily.

Under the agreement, the two companies will set up a special purpose company to raise $20 million in corporate bonds for each by putting up their credit and real estates as collateral. Nomura Securities Company will underwrite the securitization, Yomiuri Shinbun says.

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The deal is said to be the first joint securitization in the Japanese life insurance industry. Yasuda and Fukoku reportedly agreed to the joint financing arrangement to reduce overhead.