Guarantee for Privately Placed Samurai Bonds Issued by the Government of Turkey
Providing Guarantee for Samurai Bond Issue Based on Framework Agreement

  • Area: The Middle East
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  • Guarantees

March 15, 2011
  1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a set of agreements to provide a guarantee for yen-denominated foreign bonds issued in the Japanese market (Samurai bonds)*2 by the Government of the Republic of Turkey.  JBIC’s guarantee will cover the principal and part of the interest of the privately placed Samurai bonds totaling 180 billion yen.  The joint lead arrangers of this issuance are: Daiwa Securities Capital Markets Co. Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Mizuho Securities Co., Ltd.  Mizuho Corporate Bank, Ltd. is the bond administrator.
  2. JBIC signed on February 23 a framework agreement to provide a maximum guarantee of up to 180 billion yen for Samurai bonds*3 to be issued under JBIC's Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility.*4  This transaction is to provide a guarantee for Samurai bonds issued by the Turkish government under the framework agreement.
  3. The guarantee is extended as part of JBIC’s efforts to fulfill part of its mission, “maintaining and improving the international competitiveness of Japanese industries,” by supporting Samurai bond issues by foreign entities in the Tokyo bond market through JBIC’s guarantee as credit enhancement.  JBIC is thus helping to expand and diversify the range of investment opportunities available to Japanese investors and increase the activity of the Samurai bond market.  It is also expected to help the Turkish government to diversify funding sources, thereby contributing to the stable economic management of the country.
  4. JBIC will continue to support the issuance of Samurai bonds by foreign governments and government agencies in the Tokyo bond market under the GATE facility.
  1. *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
  2. *2 Samurai bonds are yen-denominated bonds issued by a foreign government or company in the Tokyo bond market.
  3. *3 See Press Release dated February 23, 2011.
  4. *4 See Press Release dated April 15, 2010.

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