Guarantee for Privately Placed Samurai Bonds Issued by the Government of Turkey
Supporting Maintaining and Strengthening of International Competitiveness of Japanese Capital Market and Helping Diversify Funding Sources for Turkey
- Area: The Middle East
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on September 22 a set of agreements to provide a guarantee for yen-denominated foreign bonds issued by the Government of Turkey in the Japanese bond market (Samurai bonds)*1
. This is a privately placed issue totaling JPY100 billion, with JBIC's guarantee on the entire principal. The joint arrangers of this issuance are Daiwa Securities Co. Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and SMBC Nikko Securities Inc., with Mizuho Bank, Ltd. participating as the bond administrator.
This guarantee is extended under the Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility*2
, and is the third guarantee provided by JBIC for Samurai bonds issued by the Government of Turkey, following the first one in February 2011*3
and the second one in March 2012*4
. It supports Samurai bond issues in the Tokyo bond market through the provision of credit enhancement, thereby contributing to the maintaining and strengthening of the international competitiveness of the Japanese capital market through making available to Japanese investors a broader and diverse range of investment opportunities, as well as helping the Turkish government to diversify its funding sources, at the same time.
The Turkish economy, registered a 4.0% annual real GDP growth in 2013, is sustaining robust economic growth, and has buoyant demand for infrastructure. Turkey is expected to become increasingly more attractive as an export market of plant facilities, equipment, and so on, and as an overseas investment destination for Japanese companies. This guarantee provision is expected to strengthen bilateral relations and contribute to more vigorous Japanese business activities in a wide range of areas.
By utilizing the GATE facility, JBIC will continue to support the issuance of Samurai bonds by foreign governments and government agencies in the Tokyo bond market.
- *1 Samurai bonds are yen-denominated bonds issued by a foreign government or company in the Tokyo bond market.
- *2 See Press Release on April 15, 2010.
- *3 See Press Release on February 23, 2011.
- *4 See Press Release on March 13, 2012.