Japan's Kinshoho law to affect non-recourse loan structures - S&P |
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Thu, 01 Nov 2007 11:47
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MUMBAI (Thomson Financial) - Japan's Financial Products and Exchange Law (Kinshoho) will have an impact on asset managers and certain borrower special purpose companies (SPCs) involved in non-recourse loan structures, according to Standard & Poor's Ratings Services.Kinshoho took full effect on Sept 30, 2007.Private real estate funds are now subject to a wider range of restrictions on their financial activities, the ratings agency said.As the law will affect so-called TK-GK schemes, commercial mortgage-backed securities (CMBS) market participants have shown heightened concerns regarding the impact Kinshoho will have on the structures of non-recourse loans, S&P said.TK-GK schemes are commonly used in non-recourse loan borrower structures. Godo kaisha (GK) joint companies are established as special purpose vehicles for borrowing loans.Investors then make equity investments in the GK in the form of tokumei kumiai (TK) anonymous partnership investments, the ratings agency said.TFN.newsdesk@thomson.comrku/manCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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