Launching “Guarantee and Acquisition toward Tokyo market Enhancement (GATE)” facility

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NR/2010-05
April 15, 2010
  1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 has decided to launch a new facility for supporting samurai bond*2  issuance.  The new “Guarantee and Acquisition toward Tokyo market Enhancement (GATE)” facility will enable JBIC to acquire samurai bonds where appropriate, in addition to providing partial guarantees for samurai bond issues.  The GATE facility will thereby support foreign governments and government agencies to raise funds in the Tokyo market.
     
  2. JBIC has been supporting samurai bond issues by foreign governments since May 2009 under the Market Access Support Facility (MASF).  The objective of MASF was to support efforts to regain access to international markets by Asian developing countries that have regularly raised funds through sovereign bond issuance in international financial markets but are temporarily unable to do so due to the global financial turmoil.  To date, responding to requests from foreign governments, JBIC has provided guarantees for sovereign samurai bonds issued by the Indonesian and Philippine governments.  In addition, as part of “responding to disruptions in financial order in the international economy,” JBIC has supported samurai bond issues by the Colombian and Mexican governments.*3    
     
  3. By supporting bond issues by foreign governments and government agencies in the Tokyo bond market, the GATE facility, a new facility with extended and enhanced functions compared to the previous one, is expected to attract foreign bond issuers to the Tokyo market and encourage them to become long-time participants in the Tokyo market.  It will also expand and diversify the range of investment opportunities available to Japanese investors, thereby helping enhance the Tokyo market (Samurai bond market).
     
  4. JBIC will mobilize the GATE facility as part of its efforts to fulfill its mission: “maintaining and improving the international competitiveness of Japanese industries”.  

    GATE: Schematic Representation
Note
  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 in the Japanese financial market by a foreign government or company.  
  3. *3 For past commitments to guarantees for Samurai bonds in the wake of the financial turmoil, please see:
     ・Information on May 18: “On Market Access Support Facility
    ・Press release on July 27, 2009: “Guarantee for Samurai Bonds issued by the Republic of Indonesia
    ・Press release on November 26: “Guarantee for Privately Placed Bonds issued by Colombia
    ・Press release on December 18, 2009: “Guarantee for Privately Placed Bonds issued by Mexico
    ・Press release on February 26: “Guarantee for Privately Placed Bonds issued by the Philippines
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