By Junko Fujita / Reuters
Tokyo: Nomura Holdings Inc, Japan’s largest brokerage, said it was raising as much as 200 billion yen ($1.9 billion) in loans from Japanese banks for possible expansion, with eyes on the opportunities in the United States.
“We have been receiving a lot of possible deals now and we see this as a good opportunity to expand,” Nomura’s CEO Kenichi Watanabe said at an investor meeting.
“Nomura, which has already raised 120 billion yen in subordinated debt, is raising more through subordinated loans to rely less on equity funding,” Watanabe said.
The borrowing plan comes after Nomura reported on Friday a 153.85 billion yen net loss in the three months to the end of March, saying the deepening global credit crunch had forced it to write down 132 billion yen for losses related to contracts with monoline insurers, which insure against the risk of a bond or another security defaulting.
Yet Nomura, which has cut its U.S. workforce by 20% to 1,063 in March from 1,322 a year ago, may start building up its business in the United States. We can not develop our business without the U.S. market, Watanabe said.
“The Japanese brokerage, however, may yet reduce its U.S. workforce further,” said Masafumi Nakada, Nomura’s chief financial officer, without specifying at which divisions.
“We may cut jobs depending on the situation,” Nakada said, adding the cut would be within Nomura’s plans which was announced in September.