Okumura Corporation, the Osaka-based general contractor, has told regulators exactly how it plans to fund a payment reform it announced this month: ending 60-day promissory notes to subcontractors in favor of full cash payment.
In an amended securities registration statement filed with the Kanto Finance Bureau on September 7, 2026, Okumura filled in previously blank terms for its planned first social bond, an unsecured issue carrying an inter-bond pari passu clause. Each bond will have a face value of ¥100mn, priced at par, and Daiwa Securities, Nomura Securities and SMBC Nikko Securities are named as the planned underwriters. The total amount to be raised is still undetermined; the filing only amends a March 2026 shelf registration that caps planned bond issuance at ¥50bn through March 2028.
| Feature | Detail |
|---|---|
| Bond name | Okumura Series 1 unsecured bond (inter-bond pari passu clause, social bond) |
| Total issue amount | Not yet determined |
| Per-bond face value | ¥100mn, priced at par |
| Underwriters | Daiwa Securities, Nomura Securities, SMBC Nikko Securities |
| Social finance framework established | September 2026 |
| JCR framework rating | Social 1(F), the top tier |
| External review support | Tokyo Metropolitan SDGs finance promotion subsidy |
| Related shelf registration cap | ¥50bn planned issuance limit, filed March 2026, valid through March 2028 |
The proceeds have one specific job. Japan's Construction Business Act permits promissory-note payments to subcontractors with terms of up to 60 days, but Okumura says rising materials and equipment costs, along with a looming shortage of construction workers, have made that practice unsustainable for the firms receiving the notes. The company will abolish 60-day notes, including those settled through debt-assumption arrangements, for all its subcontractors and pay them entirely in cash instead. Every yen raised through the bond is earmarked for the additional working capital that change requires, not for general corporate purposes.
Okumura built a social finance framework in September 2026 to support the bond, aligning it with the 2025 Social Bond Principles, Japan's 2021 Social Bond Guidelines and the 2025 Social Loan Principles. Japan Credit Rating Agency assigned the framework its top mark, Social 1(F), and JCR's external review was itself backed by a Tokyo Metropolitan subsidy for promoting social finance in the fiscal year to March 2027.
Once the bond is issued, Okumura has committed to annual reporting: how much of the proceeds has been allocated, any unallocated balance and the timing for spending it, and the share used for refinancing rather than new spending. On the impact side, the company will disclose the cash-payment execution rate and the number of subcontractors covered, giving bondholders a way to check whether the payment reform is actually reaching the construction firms it is meant to help.