IFLR 1000
The Guide to the World's Leading Financial Law Firms

"Mitsuhiro Yasuda is one of the best capital markets lawyers around," says one client of Nishimura & Asahi's practice group head. A competitor strikes a similar note: "Before, the firm lacked very experienced lawyers, but Mr Yasuda changed that by joining."

With the firm strengthening its international capability and reputation in the market to align itself with the rest of the big four, peers acknowledge its ascent: "They're getting better and better, so we must watch out in a few years." Still more widely recognised for its corporate work, the team nevertheless has made significant headway into the capital markets by landing several juicy mandates in downturn.

In a noteworthy and precedent-setting transaction, Yasuda and Hideki Ebata led a team which advised issuer Japan Expressway Holding and Debt Repayment Agency on its deep discounted bonds with 0.5% interest and 30-years maturity to Japanese institutional investors. This was the Tokyo market's first issuance of deep discounted bonds.

The team was active in the samurai bond market as well, acting for issuers Export Development Canada and Daimler on their yen-denominated bonds. Daimler issued three tranches of samurai bonds just before the Lehman crisis, proving to be the last samurai issuances in 2008 by private issuers without a governmental guarantee.

Nishimura & Asahi stands tall among its competition in the structured finance and securitisation field. Armed with strong banking client relationships and an all-star cast of practitioners, the firm has kept active this year on several interesting and complex transactions.

Although senior partner Akira Kosugi has been noted by the market to have adopted greater managing responsibilities, his ability is still highly-regarded. "As far as I'm concerned, he is the best lawyer in structured financing in both negotiations and documentation," says a financial client.

In one highlight, the team advised a Japanese golf course operator on its business restructuring and the securitisation of the golf courses owned by the operator. It was innovative because the share options were utilised to keep the borrowing entity's bankruptcy remote.

Another noteworthy transaction saw prominent partner Hajime Ueno taking the reins for Deutsche Bank Tokyo on a CMBS deal, with Shinsei Bank's headquarters as the underlying property.

The banking practice at Nishimura & Asahi has thrived as a result of the merger between Nishimura & Partners and Asahi Koma Law Offices two years earlier, boasting one of the largest teams of the domestic firms. Accordingly, the firm handles a strong volume of large-sized deals across a wide spectrum of banking services.

With a well-regarded regulatory team and a set of bankruptcy and reorganisation specialists, the team is a reliable choice for clients. Most of the firm's work is domestic, however it is keen to devote more resources to cross-border deals as future financings increasingly bear foreign elements. The team has seen a rise in regulatory advisory work, bankruptcies and refinancings as a result of the financial crisis – all core strengths of the firm.

Masahiro Ueno led a team that advised MBK Partners on the refinancing of the existing loan obligations of Tasaki Shinju Company, valued at ¥14 billion ($147 million). In a loan highlight, a team advised the Carlyle Group on a loan provided by financial institutions for the management buyout of NH Techno Glass, now known as AvanStrate. The loan was large and complex, as the assets of the target's subsidiaries outside Japan were provided to the lenders as collateral before the closing of the acquisition of the shares.

"Nishimura & Asahi is the best law firm in Japan," remarks a financial client. "They are one of the few who can bridge western principles with Japanese culture. They are very unique in their ability to advise foreign clients and their Japanese practice is very good. We use them exclusively as all the bengoshi understand US law, which is extremely helpful and forward-thinking for a Japanese firm."

Two years after the merger of Nishimura & Partners and Asahi Koma Law Offices created Nishimura & Asahi, the largest of the big four Japanese firms, it has managed to seamlessly integrate a practice that is studded with top M&A specialists and a broad network of resources, which clients love. "We have used Nishimura & Asahi for the past few years and we always choose them first because it is one of the biggest and most influential firms in Japan," says one. "We have found they have high abilities."

One partner in particular gains rave reviews from one client: "I think the best lawyer is [Yoshinobu] Fujimoto sensei. I think he is absolutely fantastic, he's aggressive, but not too aggressive as in he doesn't offend anyone." The client adds: "If we're trying to do something that won't work, he'll tell us no. He's very thoughtful, creative, thinks about solutions and is extremely commercial. He understands our business and always has an opinion, where he's almost always right."

Yo Ota is also well-regarded by clients: "He is excellent in interpreting the company law, especially its new aspects," says one, adding: "He is extremely proficient."

Another client has praise for the entire team: "[Koichi] Kusano sensei is excellent with making legal and business judgements, [Kazuhiro] Takei sensei is great with interpreting company law details, and Ms [Asa] Shinkawa is strong in forming various factors of M&A cases into agreements."

The firm boasts a wide international network and is allied with a number of top law firms in other jurisdictions. Now that the team has made its impression on the local market, it is developing its cross-border capabilities by hiring foreign lawyers and those with international experience or qualifications.

The firm has been exceptionally busy this year on the M&A front, active on no less than 35 prominent transactions where rivals have struggled to land work. A landmark deal for the team was handling client Nomura Holdings' acquisition of Lehman Brothers' Asia operations, worth $225 million in total. Ota and Hajime Ueno also advised Osaka Securities Exchange in its ¥5.3 billion ($55.8 million) purchase of a 76.1% stake in Jasdaq. This was the first time in Japan where a stock exchange company took control of another.

"The big difference between Nishimura & Asahi and the other firms is they provide solutions rather than just legal advice," says one approving client. "They proactively provide advice, are very experienced with foreign clients and their senior lawyers, who are international and knowledgeable, and provide forward-thinking leadership. They do all this while still operating in a traditional way."

The project finance practice of Nishimura & Asahi is the most established and respected of the domestic firms. It has a particular expertise in PFI (private finance initiative) projects and tends to work for top lenders in the market.

Practice head Hiroshi Maeda is a leading figure who wins accolades from clients. He is a member of a special government committee, but when his tenure ends in November 2009 he will be able to raise his profile on the sponsor side for government institutions such as Jbic (Japan Bank for International Co-operation).

The team has been active in the market since the early 1990s, and this depth of experience gives clients confidence in the quality of advice the firm dispenses.

This year, Nagahide Sato acted for lender Mizuho Corporate Bank in relation to the project financing of the Haneda Ryokaku Terminal Building. Another key mandate saw Masahiro Ueno taking the reins for a leading Japanese bank on the restructuring of loan obligations for several wind power generating projects.