The Japan International Cooperation Agency (JICA) (President: Akihiko Tanaka) has selected the following Joint Lead Managers for the issuance of the 73rd to 77th JICA Bonds (Domestic FILP Agency Bonds) (in alphabetical order except for the Administrative Lead Manager).
5-year bonds: Nomura Securities (Administrative lead manager)/Daiwa Securities/Tokai Tokyo Securities
10-year bonds: Nomura Securities (Administrative lead manager) / SMBC Nikko Securities / Daiwa Securities / Tokai Tokyo Securities
20-year bonds: Daiwa Securities (Administrative lead manager) / SMBC Nikko Securities / Shinkin Securities / Mizuho Securities
The timing and maturity of the bonds are scheduled to be as follows. Details will be discussed with the co-lead managers, while keeping a close eye on the market environment and other factors.
June: 10-year and 20-year bonds (Sustainability Bonds)
September: 5-year, 10-year and 20-year bonds (Social Bond or Sustainability Bond)
On April 7, 2023, JICA published a new “JICA Social/Sustainability Bond Framework” and received a second party opinion from Moody’s. JICA plans to issue JICA Social/Sustainability Bonds or Sustainability Bonds based on this framework for the fiscal year 2023 onward. The bonds will be issued as Social Bonds or Sustainability Bonds in accordance with the Framework. The proceeds will be used for JBIC’s grant aid projects (except for loans to coal-fired thermal power generation projects). The content of the bonds will be determined in the future.
In addition, the bonds issued by the Organization are positioned as financing to secure the funds necessary to achieve the SDGs in Japan’s “Revised Guidelines for the Implementation of the SDGs” (see note).
The bonds are scheduled to be listed on the TOKYO PRO-BOND Market. However, since the bonds are FILP agency bonds, which are exempt from Chapter II of the Financial Instruments and Exchange Act, and do not fall under the category of private placement for specific investors, they can be sold to all investors, including general investors. There are no restrictions on transfer, and the same treatment applies to secondary market transactions.
(Note: In the “Revised Guidelines for Implementation of the SDGs (December 20, 2019, partially revised)” decided by the Headquarters for Sustainable Development Goals (SDGs) Promotion established in the Cabinet (headed by the Prime Minister), “ESG finance and impact finance that consider environmental, social and governance factors, Accelerating the expansion of finance that considers not only economic returns but also social returns, such as social finance, SDG finance, and the issuance of JICA bonds as social contribution bonds, is important for mobilizing private-sector funds to achieve the SDGs. The Japanese government will promote measures to create an environment for this purpose and encourage the private sector to take action.
(In charge)
Finance Department Finance Section 1
(tel: 03-5226-9279)
© Source JICA