Steven M. Dickinson ^*
& Takeo Kosugi ^{* *}

Appendix E

GUIDELINES FOR NON-REsIDENTS DEALING IN EUROYEN CP (Hikyojusha Yuroen CP no Toriatsukai Yoryo), Ministry of Finance (Nov. 18, 1987), summary reprinted in Miyazaki, Hikyojusha Yuroen CP no Hakko Kaikin ni Tsuite (Concerning the Lifting of the Prohibition Against the Issuance of Euroyen CP by Non-Residents), KIN'YU HOMU JIJO, Dec. 15, 1987, at 26, 28

1. Entities Permitted to Issue Euroyen CP

[1] Pure non-residents falling under anyone of the following categories:

a. Entities with a long-term bond rating of A or above.

b. Entities with a short-term bond rating of or above AI, PI or F1.

c. Entities guaranteed by a parent company (non-resident) with a long-term bond rating of A or above, or with a short-term bond rating of or above AI, PI or F1.

[2] Japan-related foreign juridical persons:

a. Entities with a long-term bond rating of A or above.

b. Entities with a short-term bond rating of or above AI, PI or F1.

2. Maturity Period

[1] Pure non-residents: One year or less (if the instrument is to be resold within Japan, 180 days or less).

[2] Japan-related foreign juridical persons: One year or less.

3. Flow-Back Restriction Period

[1] Pure non-residents: Two weeks.

[2] Japan-related foreign juridical persons: Not applicable.

4. Minimum Sales Amount

[1] Pure non-residents: No limitation (if the instrument is to be resold within Japan, ¥100 million yen or more).

[2] Japan-related foreign juridical persons: No limitation.

5. Remittance of Proceeds into Japan.

[1] Pure non-residents: Prohibited if the recipient is a finance-related enterprise such as a securities company, a financial institution or a money-lending company.

[2] Japan-related foreign juridical persons: Prohibited.

6. Resale within Japan.

[1] Pure non-residents:

a. Designated securities companies.

b. Foreign exchange banks which are permitted to enter into correspondent contracts.

[2] Japan-related foreign juridical persons: Not applicable.

7. Means for approval:

[1] Pure non-residents: Approval under the Foreign Exchange and Foreign Trade Control Law.

[2] Japan-related foreign juridical persons: Approval under the Foreign Exchange and Foreign Trade Control Law.

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