JASDEC has begun to convert Samurai bonds to its book entry system. The Japanese CSD announced last week that the first 52 Samurai issues were scheduled for conversion in November.
JASDEC initially excluded Samurai bonds issued by entities other than international organization from the conversion process, pending clarification of the tax treatment with the tax authorities in the home country of the issuer.
“Samurai Bonds issued by a resident of the United States are still subject to investigation in the light of the taxation system, so they are not on the list released,” explains a spokesman for Mizuho Corporate Bank in Tokyo. “Furthermore, there are five or six issues of Samurai Bonds, issued by a resident of countries other than the United States, that remain excluded from the list. JASDEC will update the conversion list every time they complete an investigation and decide to add the new name to it. It has been working to complete the process as soon as possible, in order to move on to the book-entry system in November as scheduled.”