JBIC to Guarantee Mexico’s Samurai Bond Issuance
Supporting its Funding in Japanese Bond Market

• Region: Latin America and the Caribbean
• Others

1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)^*1 on October 20 signed a framework agreement with the government of the United Mexican States. This agreement will provide a guarantee totaling up to 150 billion yen for yen-denominated bonds issued by the Mexican government in the Japanese bond market (Samurai bonds). ^*2 JBIC will provide a guarantee within this specified amount in the agreement.
    
2. JBIC and the government of Mexico have been discussing financial support under JBIC's Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility.^*3  This is the first financial support provided under the GATE facility.
    
3. The Mexican government has achieved steadfast national economic growth through its prudent macroeconomic management. It is now seeking to diversify funding sources in an effort to realize more stable funding.
    
4. This issuance of Samurai bonds reflects the policies of the Mexican government, and JBIC's credit enhancement will help diversify its funding sources. In December 2009, responding to turmoil in the international financial markets, JBIC provided a guarantee for 150 billion yen samurai bonds issued by the Mexican government.^*4  The continued support for its samurai bond issuance will maintain and increase the presence of Mexican sovereign bonds in the Tokyo bond market. JBIC's support for samurai bond issues in the Tokyo bond market will also offer a wide range of investment opportunities to Japanese investors and is thereby expected to invigorate the Samurai bond market.
    
5. JBIC will continue to support Samurai bonds issued by foreign governments in the Tokyo market by utilizing the GATE facility.

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 by a foreign government or company in the Tokyo bond market.
3. *3 See Press Release on April 15, 2010.
4. *4 See Press Release on December 18, 2009.
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