Guarantee for Privately Placed Samurai Bonds Issued by Central Bank of Tunisia
Supporting Its Second Samurai Bond Issue

• Region: Africa
• Others
• Guarantees

1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a set of agreements to provide a guarantee for yen-denominated foreign bonds issued by the Central Bank of Tunisia in the Japanese bond market (Samurai bonds)¹. This is a privately placed issue in the amount of 22.4 billion yen. JBIC’s guarantee will cover the principal and part of the interest. Daiwa Securities Capital Markets Co. Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. participate in this issue as joint lead arrangers, with Mizuho Bank, Ltd. serving as a commissioned company for bondholders.
    
2. JBIC guarantees this issue under the Guarantee and Acquisition toward Tokyo Market Enhancement (GATE) facility², for issue of Samurai bonds by the government and governmental agencies of African countries. Furthermore, this is a part of the Deauville Partnership which is designed to support the countries in the Middle East and North Africa.³ This is the second JBIC guarantee for the Samurai bonds issued by the Central Bank of Tunisia, following the ones issued in December 2012.⁴ By continuously supporting the bond issues of the Central Bank of Tunisia, JBIC is lending a hand to the Government of Tunisia’s diversification of its funding sources. At the same time, it is expecting to expand and diversify the range of investment opportunities available to Japanese investors and activate the Samurai bond market, thereby contributing to maintaining and improving the international competitiveness of the Japanese capital market.
    
3. Tunisia achieved 3.6% in real economic growth in 2012 and is projected to grow by 4.0% in 2013. As the country has been making efforts in its transition to democracy, it has become increasingly more attractive to Japanese companies as an export market of machinery and equipment and as an investment destination. This guarantee provision is expected to further strengthen bilateral relations and contribute to more vigorous Japanese business activities in a wide range of areas. This guarantee will support Tunisia under the JBIC Facility for African Investment and Trade Enhancement (FAITH).⁵
    
4. JBIC will continue to support the issuance of Samurai bonds by foreign governments or government agencies in the Tokyo bond market under the GATE facility.
    

Note

1. *1 Samurai bonds are yen-denominated bonds issued by a foreign government or company in the Tokyo bond market.
2. *2 See Press Release on April, 15, 2010.
3. *3 Deauville Partnership is a framework agreed on to support the historical changes of Middle East and North African nations during the G8 Deauville Summit in May 2011.
4. *4 See Press Release on December 12, 2012.
5. *5 See Information on June 3, 2013.