Guarantee for Privately Placed Samurai Bonds Issued by the Government of Turkey
Helping Activate the Samurai Bond Market and Diversifying the Funding Sources of the Republic of Turkey

  • Area: The Middle East
  • Others
  • Guarantees

March 13, 2012
  1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1signed today a set of agreements to provide a guarantee for yen-denominated foreign bonds issued by the Government of the Republic of Turkey in the Japanese bond market (Samurai bonds).*2 This is a privately placed issue totaling 90 billion yen. JBIC's guarantee will cover the principal and part of the interest. The joint arrangers of this issuance are Daiwa Securities Capital Markets Co. Ltd., Nomura Securities Co., Ltd., and SMBC Nikko Securities Inc., with Mizuho Corporate Bank, Ltd. participating as the bond administrator.
  2. This guarantee is extended under the Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility*3, and is the second guarantee provided by JBIC for Samurai bonds issued by the Government of the Republic of Turkey, following the first one in February 2011*4. It supports Samurai bond issues in the Tokyo bond market through the provision of credit enhancement, thereby making available to Japanese investors a broader, diverse range of investment opportunities, and increasing activities in the Tokyo Samurai bond market. In the meantime, JBIC's support also helps the Turkish government to diversify its funding sources.
  3. The Turkish economy registered about a robust 7.5% annual real GDP growth in 2011, is sustaining healthy 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 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.
  4. By using 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. *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 February 23, 2011


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