Guarantee for Privately Placed Samurai Bonds Issued by the Government of the United Mexican States
Supporting Sovereign Bond Issue Based on Framework Agreement

• Region: Latin America and the Caribbean
• Others
• Guarantees

1. 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 (Samurai bonds)^*2 issued by the Government of the United Mexican States in the Japanese bond market. JBIC's guarantee will cover the principal and part of interest of the privately placed Samurai bonds totaling 150 billion yen. Japanese participants in the issuance include: Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Mizuho Securities Co., Ltd. as joint lead arrangers, as well as Mizuho Corporate Bank, Ltd. as a bond administrator. 
    
2. On October 20, 2010, JBIC signed a framework agreement^*3 with the Government of the United Mexican States to provide a guarantee totaling up to 150 billion yen under the Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility.^*4 This is the first Samurai bond issuance under the GATE facility based on this framework agreement. 
    
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 offered by JBIC with guarantee provision. JBIC's support will expand and diversify the range of investment opportunities available to Japanese investors, and help activate the Samurai bond market. It is also expected to support the Government of the United Mexican States in diversifying their funding sources, thereby contributing to the stable economic management of the country.
    
4. JBIC will continue its support for Samurai bond issuance by foreign governments or government agencies in the Tokyo bond market by using 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 dated October 20, 2010.
4. *4 See Press Release dated April 15, 2010.