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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on May 17 a set of agreements to provide a guarantee for yen-denominated foreign bonds in the Japanese bond market (Samurai bonds) issued by Bank Gospodarstwa Krajowego (BGK; President of the Management Board： Beata Daszyńska-Muzyczka) of Poland. This is a privately placed issue totaling JPY93 billion. The joint lead arrangers are Nomura Securities Co., Ltd. and Daiwa Securities Co. Ltd., with Mizuho Bank, Ltd. serving as a commissioned company for the bondholders.
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BGK is a policy-based financial institution wholly owned by the Government of Poland that provides financial services to support the sustainable economic and social development of Poland. JBIC signed a memorandum of understanding with BGK in September 2022
*1 and has had discussions for further strengthening cooperation in multiple areas, including assistance for Ukraine.
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In the wake of Russia’s aggression against Ukraine, the Government of Japan has endeavored to enhance its relationship with Ukraine and Poland. Prime Minister KISHIDA Fumio conveying Japan’s solidarity and unwavering support for Ukraine during his visit to these two countries in March 2023 is a case in point. Also, the Basic Policy on Economic and Fiscal Management and Reform 2022, which was approved by the Cabinet in June 2022, states that Japan, as the chair of the G7, will resolutely respond to the aggression against Ukraine and boost support for Ukraine and neighboring countries.
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Poland has been one of the main destinations for refugees from Ukraine since the Russia’s aggression had started. In order to raise and channel funds for assistance to Ukraine and its citizens affected by the war, including for medical care, education, and housing for refugees, the Aid Fund was established in BGK. The Samurai bonds are intended to contribute to the Aid Fund to support its tasks in connection with the armed conflict on the territory of Ukraine.
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This guarantee is provided under JBIC’s “Guarantee and Acquisition toward Tokyo market Enhancement” (GATE)
*2. JBIC’s credit enhancement through the GATE facility for BGK’s Samurai bond issuance is expected to provide broader investment opportunities for Japanese investors. It will also contribute toward maintaining and strengthening the competitiveness of Japan’s capital market and will assist BGK in diversifying its sources of financing.
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JBIC will continue to support the issuance of Samurai bonds by foreign governments and their agencies in the Tokyo bond market by utilizing its GATE facility, as well as contributing toward further deepening and developing economic relations between Japan and other countries.
