Fees and Other Expenses

• If you purchase foreign currency bonds through offerings, sales, or by trading directly with our company, you will only be required to pay the purchase price.
• When buying, selling, or redeeming foreign currency bonds and exchanging yen for foreign currency, the exchange rate will be determined by our company, taking into account trends in the foreign exchange market.

There is a risk of loss due to fluctuations in market prices and other indicators in the financial markets.

• The market price of foreign currency bonds fundamentally fluctuates in response to changes in market interest rates. When interest rates rise, bond prices tend to fall, and conversely, when interest rates decline, bond prices tend to rise. Therefore, if you redeem the bonds before the maturity date, you may have to sell at market price, resulting in a potential loss. Additionally, if market conditions change and liquidity (convertibility) decreases significantly, it may not be possible to sell the bonds.
• Interest rates fluctuate in response to changes in policy rates determined by central banks in various countries, as well as market interest rates (for example, the yields on already issued bonds) and the lending rates of financial institutions.
• The value of foreign currency bonds, when converted to yen, will decline if the exchange rate (the ratio of yen to foreign currency) appreciates, while it will increase if the exchange rate depreciates. Therefore, there is a risk of foreign exchange losses depending on the exchange rate situation at the time of sale or redemption.
• If there are restrictions on currency exchange, it may not be possible to convert principal and interest into yen or to make remittances.

There is a risk of loss due to changes in the business or financial condition of the issuer of the securities or the guarantor of principal and interest payments.

• If there are changes in the credit status of the issuer of the foreign currency bonds or the guarantor of the principal and interest payments, the market price may fluctuate, potentially resulting in a loss upon sale.
• Due to a deterioration in the credit status of the issuer or guarantor of the foreign currency bonds, there is a risk that the payment of principal or interest may be delayed or become impossible.
• For foreign currency bonds rated by major rating agencies as having "strong speculative elements," the risk of delayed or impossible payments of principal or interest due to deterioration in the issuer's or guarantor's credit status is considered higher.

Transactions involving foreign currency bonds are not subject to cooling-off rights.

• Provisions of Article 37-6 of the Financial Instruments and Exchange Act do not apply to transactions involving foreign currency bonds.

Overview of Financial Instrument Transactions Involving Foreign Currency Bonds

The transactions involving foreign currency bonds at our company are as follows:

• Handling of offerings or sales of foreign currency bonds or private placements.
• Direct transactions where our company acts as the counterparty.
• Brokerage, intermediation, or agency for buying and selling foreign currency bonds.

Overview of Taxes Related to Foreign Currency Bonds

Taxation for individual customers is as follows:

• Interest on foreign currency bonds is taxed as interest income.
• Profits generated from the sale of foreign currency bonds are generally tax-exempt.
• Profits generated from the redemption of foreign currency bonds are generally taxed as miscellaneous income.
• If a foreign currency bond issued overseas is a discount bond, profits from the sale are generally taxed as capital gains, and profits from redemption are generally taxed as miscellaneous income.
• If a foreign currency bond issued domestically is a discount bond, profits from the sale are generally tax-exempt, and profits from redemption are generally subject to withholding tax at the time of issuance.

Taxation for corporate customers is as follows:

• Interest on foreign currency bonds, profits from sales, and profits from redemptions are included in the taxable income calculation for corporate tax.

Additionally, for both individual and corporate customers, interest on foreign currency bonds issued overseas may be subject to local withholding tax based on the tax regulations of the issuing country.
For more details, please consult a tax professional or advisor.

Transfer Restrictions

• Foreign currency bonds that are transfer bonds (referring to paperless bonds managed under Japan's transfer system) cannot be traded on the business day prior to their redemption date or interest payment date. Additionally, foreign currency bonds issued overseas may also have transfer restrictions imposed by local transfer systems.

Overview of the Financial Services and Methods Provided by Our Company

Our company’s financial services primarily fall under the first category of financial instruments business as stipulated in Article 28, Paragraph 1 of the Financial Instruments and Exchange Act. When conducting transactions involving foreign currency bonds or custodial deposits, the following applies:

• When dealing with foreign currency bonds issued overseas, it is necessary to open a foreign securities trading account. For foreign currency bonds issued domestically, a custodial deposit account or a transfer settlement account must be opened.
• When receiving transaction orders, we will, as a rule, require that the full amount related to the order or the entire or part of the securities (such as advance payments) be deposited beforehand.
• If the full amount of the advance payment is not deposited, you must deposit the amount or securities related to the order by an agreed date with our company.
• When placing an order, you must specify necessary details such as the security name, buy/sell distinction, quantity, price, etc. If these details are not specified, the transaction may not proceed. You may also be required to submit an order form.
• Once the transaction you ordered is executed, we will provide you with a transaction report (including by mail or electronic means).

Explanation of Unregistered Ratings (For Moody's Investors Service, Inc.)

In order to ensure the fairness and transparency of the market, a registration system for credit rating agencies has been introduced based on the Financial Instruments and Exchange Act.
Accordingly, financial instrument businesses must inform customers that the ratings provided by unregistered rating agencies are indeed unregistered ratings and explain the significance of registration when soliciting using such ratings.

• Significance of Registration
  Registered credit rating agencies are subject to regulations including: ① duty of sincerity, ② obligation to establish a management system to prevent conflicts of interest and ensure fairness in the rating process, ③ prohibition of granting ratings if they hold the securities being rated, ④ obligation to create and publish rating policies and related disclosure documents for public inspection, and they are supervised by the Financial Services Agency, which includes report requests, on-site inspections, and business improvement orders. In contrast, unregistered rating agencies are not subject to these regulations and supervision.
• Name of the Rating Agency Group
  Name of the rating agency group: Moody's Investors Service, Inc. (hereafter referred to as "Moody's").
  Name and registration number of the credit rating agency within the group: Moody's Japan K.K.
  

  (Financial Services Agency Registration No. 2)

• How to Obtain Information on Policies and Methods Used to Grant Ratings
  Information can be found in the "Use of Unregistered Ratings" section under "Credit Rating Business" on Moody's Japan K.K. website (click on Moody's Japanese website: http://www.moodys.co.jp).
• Assumptions, Significance, and Limitations of Credit Ratings
  

  Moody's credit ratings represent current opinions regarding the relative credit risk of entities, credit contracts, debts, or debt-like securities. Moody's defines credit risk as the risk that an entity will be unable to fulfill contractual or financial obligations on time and any type of financial loss that may be anticipated in the event of default. Credit ratings do not address liquidity risk, market risk, price volatility, or other risks. Furthermore, credit ratings do not constitute investment or financial advice, nor do they recommend the purchase, sale, or holding of any specific securities. Moody's makes no guarantees, whether express or implied, regarding the accuracy, timeliness, completeness, merchantability, or fitness for a particular purpose of these ratings or any other opinions or information.
  Moody's conducts credit evaluations based on information obtained from issuers and publicly available information. Moody's takes all necessary measures to ensure that this information is of sufficient quality and that the sources of such information are considered reliable. However, Moody's is not an auditor and cannot always independently verify the accuracy and validity of information received in the rating process.

This information was created on September 30, 2010, from sources considered reliable, but our company does not guarantee its accuracy or completeness. For more details, please refer to the above Moody's Japan K.K. website.

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Explanation of Unregistered Ratings (For S&P Global Ratings)

In order to ensure market fairness and transparency, a registration system for credit rating agencies has been established under the Financial Instruments and Exchange Act.

As a result, when financial instrument businesses solicit using ratings provided by unregistered rating agencies, they must inform customers that these are unregistered ratings and explain the significance of registration, as required by the Financial Instruments and Exchange Act.

• Significance of Registration
  Registered credit rating agencies are subject to regulations including: ① duty of sincerity, ② obligation to establish management systems to prevent conflicts of interest and ensure fairness in the rating process, ③ prohibition of granting ratings if they hold the rated securities, ④ obligation to create and publish rating policies and related disclosure documents for public inspection, and they are supervised by the Financial Services Agency, including report requests, on-site inspections, and business improvement orders. In contrast, unregistered rating agencies are not subject to these regulations and supervision.
• Name of the Rating Agency Group
  Name of the rating agency group: S&P Global Ratings
  Name and registration number of the credit rating agency within the group: S&P Global Ratings Japan K.K.
  

  (Financial Services Agency Registration No. 5)

• How to Obtain Information on Policies and Methods Used to Grant Ratings
  Information can be found on the S&P Global Ratings Japan K.K. website under "Library & Regulatory" in the "Unregistered Rating Information" section (http://www.standardandpoors.co.jp and http://www.standardandpoors.co.jp/unregistered).
• Assumptions, Significance, and Limitations of Credit Ratings
  

  S&P Global Ratings’ credit ratings are current opinions regarding the future creditworthiness of issuers or specific debts, and do not represent an indicator of the probability of default, nor do they guarantee credit quality. Furthermore, credit ratings do not recommend the purchase, sale, or holding of securities, nor do they indicate the market liquidity of debts or the prices in the trading market.
  Credit ratings may fluctuate due to various factors, including changes in performance, external environments, the performance of underlying assets, and changes in the creditworthiness of counterparties.
  S&P Global Ratings conducts rating analyses using information provided from sources deemed reliable and will only grant ratings if it believes sufficient quality and quantity of information is available to reach a rating opinion. However, S&P Global Ratings does not conduct audits, due diligence, or independent verification of information provided by issuers or other third parties, nor does it guarantee the accuracy, completeness, or timeliness of the information used for ratings or the results obtained from using such information. It is also important to note that some credit ratings may carry potential risks associated with limited historical data availability.

This information was created on April 28, 2017, from sources considered reliable, but our company does not guarantee its accuracy or completeness. For more details, please refer to the above S&P Global Ratings Japan K.K. website.

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Company Overview

Company Name	One Asia Securities Co., Ltd. Financial Instruments Business Operator, Kanto Local Finance Bureau Director (No. 201)
Head Office Location	3F, Nisshin Building, 1-6-4 Kudan Kit, Chiyoda-ku, Tokyo 102-0073
Membership	Japan Securities Dealers Association
Designated Dispute Resolution Organization	Non-Profit Organization Securities and Financial Products Mediation Consultation Center
Capital	100 million yen (as of October 3, 2022)
Main Business	Financial Instruments Business
Date of Establishment	February 2001
Contact Information	03-6273-4201

Contact Information for Opinions and Complaints

Address	3F, Nisshin Building, 1-6-4 Kudan Kit, Chiyoda-ku, Tokyo 102-0073
Phone Number	03-6273-4391 Monday to Friday (excluding holidays) 8:30 AM to 5:30 PM

Information on the Financial ADR System

The Financial ADR system aims for a simple and rapid resolution of disputes and troubles between customers and financial institutions without resorting to judicial proceedings. For resolving complaints and disputes related to financial instrument business, you can utilize the "Securities and Financial Instruments Mediation Center (FINMAC)," which is a designated dispute resolution organization under the Financial Instruments and Exchange Act.

FINMAC is a public third-party organization and is not affiliated with our company.

Address	1-1, Nihonbashi Kayabacho 2-chome, Chuo-ku, Tokyo 103-0025
Phone Number	0120-64-5005 Monday to Friday (excluding holidays) 9:00 AM to 5:00 PM