Borrowings

12 Months Ended

Mar. 31, 2017

Borrowings

Borrowings

10. Borrowings:

The following table presents short-term and long-term borrowings of Nomura as of March 31, 2016 and 2017.

	Millions of yen
	March 31
	2016		2017
Short-term borrowings(1):
Commercial paper	¥	177,906	¥	2,562
Bank borrowings		149,775		130,676
Other		335,221		409,811
Total	¥	662,902	¥	543,049
Long-term borrowings:
Long-term borrowings from banks and other financial institutions(2)	¥	3,197,303	¥	2,868,591
Bonds and notes issued(3):
Fixed-rate obligations:
Japanese yen denominated		1,300,872		1,099,278
Non-Japanese yen denominated		876,088		782,315
Floating-rate obligations:
Japanese yen denominated		726,568		825,038
Non-Japanese yen denominated		293,207		164,397
Index / Equity-linked obligations:
Japanese yen denominated		802,849		822,746
Non-Japanese yen denominated		805,217		592,831
		4,804,801		4,286,605
Subtotal		8,002,104		7,155,196
Trading balances of secured borrowings		127,455		40,212
Total	¥	8,129,559	¥	7,195,408

(1) Includes secured borrowings of ¥82,861 million as of March 31, 2016 and ¥158,156 million as of March 31, 2017.

(2) Includes secured borrowings of ¥226,704 million as of March 31, 2016 and ¥120,322 million as of March 31, 2017.

(3) Includes secured borrowings of ¥744,945 million as of March 31, 2016 and ¥851,239 million as of March 31, 2017.

Trading balances of secured borrowings

These are liabilities recognized when a transfer of a financial asset does not meet the criteria for sales accounting under ASC 860 and therefore the transaction is accounted for as a secured borrowing. These borrowings are part of Nomura’s trading activities intended to generate profits from the distribution of financial products secured by those financial assets.

Long-term borrowings consisted of the following:

	Millions of yen
	March 31
	2016		2017
Debt issued by the Company	¥	3,624,836	¥	3,006,669
Debt issued by subsidiaries—guaranteed by the Company		1,973,213		1,846,119
Debt issued by subsidiaries—not guaranteed by the Company(1)		2,531,510		2,342,620
Total	¥	8,129,559	¥	7,195,408

(1) Includes trading balances of secured borrowings.

As of March 31, 2016, fixed-rate long-term borrowings mature between 2016 and 2046 at interest rates ranging from 0.00% to 14.53%. Excluding perpetual subordinated debts, floating-rate obligations, which are generally based on LIBOR, mature between 2016 and 2047 at interest rates ranging from 0.00% to 9.01%. Index / Equity-linked obligations mature between 2016 and 2046 at interest rates ranging from 0.00% to 31.00%.

As of March 31, 2017, fixed-rate long-term borrowings mature between 2017 and 2047 at interest rates ranging from 0.00% to 14.53%. Excluding perpetual subordinated debts, floating-rate obligations, which are generally based on LIBOR, mature between 2017 and 2047 at interest rates ranging from 0.00% to 4.50%. Index / Equity-linked obligations mature between 2017 and 2047 at interest rates ranging from 0.00% to 33.20%.

Certain borrowing agreements contain provisions whereby the borrowings are redeemable at the option of the borrower at specified dates prior to maturity and include various equity-linked or other index-linked instruments.

Nomura enters into swap agreements to manage its exposure to interest rates and foreign exchange rates. Principally, debt securities and notes issued are effectively converted to LIBOR-based floating rate obligations through such swap agreements. The carrying value of the long-term borrowings includes adjustments to reflect fair value hedges.

Following table presents the effective weighted-average interest rates of borrowings, including the effect of fair value hedges as of March 31, 2016 and 2017.

	March 31
	2016			2017
Short-term borrowings		0.77	%		1.20	%
Long-term borrowings		0.88	%		0.90	%
Fixed-rate obligations		1.45	%		1.03	%
Floating-rate obligations		0.89	%		1.26	%
Index / Equity-linked obligations		0.36	%		0.37	%

Maturities of long-term borrowings

The following table presents the aggregate annual maturities of long-term borrowings, including adjustments related to fair value hedges and liabilities measured at fair value, as of March 31, 2017:

Year ending March 31	Millions of yen
2018	¥	478,658
2019		1,164,050
2020		1,173,632
2021		876,145
2022		660,015
2023 and thereafter		2,802,696
Subtotal		7,155,196
Trading balances of secured borrowings		40,212
Total	¥	7,195,408

Borrowing facilities

As of March 31, 2016 and 2017, Nomura had unutilized borrowing facilities of ¥27,458 million and ¥nil, respectively. The terms for these unutilized borrowing facilities do not significantly differ from existing borrowings. Nomura has structured facilities to ensure that the maturity dates of these facilities are distributed evenly throughout the year in order to prevent excessive maturities of facilities in any given period. These facilities are subject to customary lending conditions and covenants.

Subordinated borrowings

As of March 31, 2016 and 2017, subordinated borrowings were ¥657,463 million and ¥484,854 million, respectively.