Pursuant to Articles 33 and 35 of the Japan Bank for International Cooperation Act (hereinafter referred to as the "JBIC Act") and Article 2, Paragraph 2 of the Act Concerning Special Measures with Respect to Acceptance of Foreign Capital from the International Bank for Reconstruction and Development, etc., JBIC is allowed to issue international bonds explicitly guaranteed by the Japanese government denominated in foreign currencies to fund its operations.
JBIC and its predecessors have issued government-guaranteed foreign currency bonds in international capital markets over the years since 1983 and JBIC enjoys high reputation as a leading Japanese public bond issuer in these markets. JBIC continues to issue international bonds explicitly guaranteed by the Japanese government in order to use their proceeds for its operations.
To sell government-guaranteed bonds in the United States market, JBIC and its predecessors have continuously filed with the U.S. Securities and Exchange Commission (SEC) a registration statement for foreign governments and political subdivisions, pursuant to the Securities Exchange Act, and registered for multiple issues of its securities. As part of the disclosure procedures for issuers in the U.S. securities markets, JBIC has filed its disclosure documents as required by SEC on their online database.
U.S. Securities and Exchange Commission (SEC) Filings Form 18-K
Listed below is the latest original annual 18-K report.
Further Information is available at SEC website.
Issuance Plan and Policy
- The maximum total funding volume of international bonds explicitly guaranteed by the Japanese government is determined through discussions with the Japanese government in the budgetary process during which JBIC prepares its operational and funding plans for its operations. In FY2023, the funding of JPY 1,845billion equivalent is planned. As a policy-based financing institution with a mission to contribute to the sound development of Japan and the international economy and society, JBIC recognizes that international bonds explicitly guaranteed by the Japanese government are important instrument for funding foreign currencies for its operations.
- The proceeds of issues will be used for providing foreign currency-denominated loans. As foreign currency financing has been growing in recent years, funding operations in international capital markets have become increasingly important. JBIC will thus seek to ensure continuous and stable fund-raising operations by expanding the investor base through our greater name recognition.
Characteristics/ Credit Ratings
- All debt securities issued in international capital markets are backed by unconditional and irrevocable guarantee of the Japanese government for principal and interest payments.
- Pursuant to Article 33 of the JBIC Act, the basic annual issuance policy for its debt securities, including government-guaranteed bonds, is subject to approval by the Minister of Finance.
- The credit ratings for JBIC's government-guaranteed bonds are as follows.
* As of October 12, 2023
- Article 34 (Statutory Lien)
- A holder of JBIC's corporate bonds shall, with respect to the property of JBIC, have the right to have his/her receivables satisfied in preference to other creditors.
- 2.The order of the statutory lien set forth in the preceding Paragraph shall be next to the general liens prescribed by the provisions of the Civil Code (Act No. 89 of 1896).
Dissolution and others
- Article 42 (Merger, Company Split, Share Exchange, Assignment and Acceptance of Assignment of Business and Dissolution)
- Notwithstanding the provisions of Part II, Chapters VII and VIII and Part V, Chapters II, III and IV, Section I of the Companies Act, the merger, company split, share exchange, assignment and acceptance of assignment of all or part of business, to which JBIC becomes a party, and dissolution of JBIC shall be provided for separately by an Act.
- This means dissolution, etc. of JBIC cannot occur without necessary legislative measures.