Partial Acquisition of Publicly Offered Samurai Blue Bonds Issued by Government of Indonesia
Supporting Resolution of Social Issues in Indonesia

• Region: Asia
• Others
• Untied Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) partially acquired yen-denominated foreign bonds (Samurai bonds^*1) today under the Guarantee and Acquisition toward Tokyo market Enhancement (GATE)^*2 financing facility. These bonds are part of Blue bonds^*3, totaling JPY20.7 billion, issued by the Government of Indonesia through public placement in the Japanese market.
     
2. In July 2009^*4, November 2010^*5, November 2012^*6, and August 2015^*7, JBIC provided guarantees for Samurai bonds issued by the Government of Indonesia, and partially acquired such bonds in August 2015 and June 2016^*8. The bonds that JBIC partially acquired this time are the first Blue bonds that the Government of Indonesia has issued. The Government of Indonesia is the first foreign issuer of Blue bonds in the Samurai bond market.
     
3. In August 2021, the Government of Indonesia formulated the SDG Government Securities Framework, which is aligned with the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association (ICMA). The Blue bonds issued by the Government of Indonesia this time are in line with this Framework.
     
4. The Government of Indonesia preserves the marine environment under its marine policy, which is one of its priorities. The proceeds of the bonds will be allocated to the eligible projects under the framework, which may include marine and coastal protection and restoration of biodiversity and ecosystems, waste management, sustainable fisheries, and so on. The purchase of the bonds will contribute toward the facilitation of such projects, thereby strengthening the cooperation between JBIC and the Government of Indonesia.
     
5. Supporting Samurai Blue bond issuance by the Government of Indonesia will contribute toward maintaining and increasing the presence of Indonesian sovereign bonds in the Tokyo bond market with an ESG focus. It will also offer a wide range of investment opportunities to Japanese investors, thereby invigorating the Samurai bond market.
     
6. 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 toward further deepening and developing economic relations between Japan and other countries.
     

Note

1. *1 
   Samurai bonds are yen-denominated bonds issued in the Tokyo bond market by foreign governments or companies. The original Shelf Registration Statement was filed on April 28, 2022, and Amendment to Shelf Registration Statement on May 16, 2023, and Supplemental Document to Shelf Registration Statement submitted to the Kanto Local Finance Bureau from the Government of Indonesia on May 19, 2023.
2. *2 
   See Press Release on April 15, 2010.
3. *3 
   Blue bonds are the bonds whose use of proceeds is limited to activities in the marine sector, such as conservation of marine resources. ESG investing (investment where environmental, social, and governance impacts are considered) includes investing in Blue bonds.
4. *4 
   See Press Release on July 27, 2009.
5. *5 
   See Press Release on November 9, 2010.
6. *6 
   See Press Release on November 20, 2012.
7. *7 
   See Press Release on August 13, 2015.
8. *8 
   See Press Release on June 21, 2016.