- Region: Latin America and the Caribbean
January 21, 2011
- 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 by the Government of the Republic of Panama in the Japanese bond market (Samurai bonds).*2 JBIC's guarantee will cover the principal and part of the interest of privately placed Samurai bonds totaling 41.5 billion yen. Japanese participants in the issuance include: Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Daiwa Securities Capital Markets Co. Ltd. serving as joint lead arrangers, while Mizuho Corporate Bank, Ltd. serves as the bond administrator.
- The guarantee was extended under JBIC's Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility.*3 As part of efforts to fulfill its mission: “maintaining and improving the international competitiveness of Japanese industries,” JBIC supports Samurai bond issues by foreign entities in the Tokyo bond market with credit enhancement. Thereby, JBIC will help expand and diversify the range of investment opportunities available to Japanese investors, and help activate the Samurai bond market. This is the guarantee for the first Samurai bonds issued by the Government of the Republic of Panama and the third guarantee for Samurai bonds provided by JBIC under the GATE facility.
- The Panamanian economy registered 2.4% real annual GDP growth even amidst the financial crisis in 2009, and is estimated to grow at 7% in 2010. There are plans underway for public investment projects, including national roads, highways and a subway system. Given its prospects for high growth, vigorous Japanese business operations are foreseen. This guarantee will contribute to the diversification of funding sources for the country, which has primarily issued in the U.S. market to date, and hopefully lead to the strengthening of bilateral relations between the two countries and the promotion of Japanese business activities.
- JBIC will continue its support for Samurai bond issuance by foreign governments or government agencies in the Tokyo bond market under the GATE facility.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 Samurai bonds are yen-denominated bonds issued by a foreign government or company in the Tokyo bond market.
- *3 See Press Release dated April 15, 2010.