Partial Acquisition of Publicly Offered Samurai Bonds Issued by the Government of the Philippines and Signing of MOU for Enhanced Cooperation
Supporting vitalization of Samurai bond market and strengthening cooperation with the Government of the Philippines
- Region: Asia
- Untied Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) partially acquired yen-denominated foreign bonds (Samurai bonds)*1
issued by the Government of the Philippines through public placement in the Japanese market on August 15, 2018 under its financing facility called "Guarantee and Acquisition toward Tokyo market Enhancement" (GATE).*2
This time, the Government of the Philippines issued Samurai bonds, totaling 154.2 billion yen, without a guarantee from JBIC. JBIC partially acquired such Samurai bonds issuance by the Government of the Philippines, following its support with a guarantee in March 2010.*3
Through such phased issuance of the Samurai bonds, the Government of the Philippines maintains and increases its presence as the issuer in the Tokyo bond market. Such foreign issuers' active participation in the Tokyo market is expected to provide broader investment opportunities for Japanese investors and stimulate the Samurai bond market.
In addition, JBIC signed on August 16 a memorandum of understanding (MOU) with the Government of the Philippines for enhancing strategic cooperation in infrastructure development. This MOU aims to further strengthen close cooperation and partnership that has been fostered between the Government of the Philippines and JBIC, with the objective of encouraging Japanese companies to participate in infrastructure development in the country.
The Government of the Philippines strives to promote infrastructure development under the slogan of its "Build, Build, Build" infrastructure program. Under such circumstances, more attention is drawn to infrastructure projects where Japanese companies are involved and Japanese technologies are introduced. The signing of this MOU is expected to strengthen cooperation and partnership between the Government of the Philippines and JBIC, possibly through the use of its new Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG)*4
, and to boost business opportunities for Japanese companies in the Philippines.
JBIC will continue to support the issuance of Samurai bonds by foreign governments and their agencies in the Tokyo bond market by utilizing its GATE financing facility, as well as contribute to further deepening and developing economic relations between Japan and other countries.
Samurai Bonds are yen-denominated bonds issued by foreign governments or companies in the Tokyo bond market. The Government of the Philippines submitted its securities registration statements to the Kanto Local Finance Bureau on July 23, 2018.