Lombard loans in Japan.
Private credit against Japan-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Japan-listed shares is credit secured by a pledge of equity listed on the TSE. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment. Known locally in some markets as “証券担保ローン”, the instrument is the same: a loan secured by a pledge of listed shares.
- Lombard loans are arranged against shares listed on the TSE (TSE).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in JPY or cross-currency.
- Structured under the FSA regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Japan venue: Tokyo Stock Exchange (TSE). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Japan are regulated by Financial Services Agency (FSA). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in JPY or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Tokyo Stock Exchange (TSE) |
|---|---|
| Regulator | Financial Services Agency (FSA) |
| Currency | JPY (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | Nikkei 225, TOPIX |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a Japan-listed position?
Request terms →Lombard loans across Asia-Pacific.
On this market, specifically.
Disclosure and regulation
In Japan the large shareholding report under the Financial Instruments and Exchange Act brings a holder onto the public record at 5%, with an amended filing on each subsequent 1% move; the FSA oversees the regime. A charge over listed shares — what the market terms 証券担保ローン — leaves the client as the reporting holder, so filings must track the pledge rather than treat it as a disposal. Where a position sits inside one of the enduring cross-shareholding webs of the large-cap universe, we take particular care that a Lombard facility neither disturbs those relationships nor prompts an unexpected disclosure.
An illustrative example
By way of illustration only: a founder holding JPY 4 billion of a Prime Market name could raise a Lombard loan at a conservative 45% loan-to-value, comfortably inside the indicative 20–65% band, releasing roughly JPY 1.8 billion while retaining the shares, the votes and the dividend stream. Drawdown can be in yen or switched into USD, EUR or CHF for the client’s wider balance sheet. The numbers are hypothetical; a live advance would reflect the specific name’s free float, turnover and any cross-holding sensitivities rather than any set formula.
Illustrative only — not an offer, a quotation, or a commitment to lend.