The Japan International Cooperation Agency (JICA) announced on May 16, 2023 (New York time) the following terms and conditions for the issuance of Global Dollar Denominated Notes guaranteed by the Government of Japan.
Issue amount: US$1.25 billion
Issue Date: May 23, 2023
Term: 5 years (redeemable on May 23, 2028)
Surface interest rate: 4.000%.
Issue price: 99.628% (investor yield: 4.083%)
Guarantor: Government of Japan
Acquisition Rating: A+ (Standard & Poor’s Ratings Japan K.K.)
Format: SEC Registered Bonds
Listing: Singapore Stock Exchange
Co-lead manager:
Daiwa Capital Markets Europe Limited, Barclays Bank PLC, Citigroup Global Markets Limited, Morgan Stanley & Co.
Use of Funds:
On April 7, 2023, JICA released a new “JICA Social/Sustainability Bond Framework” and obtained a second party opinion from Moody’s. The Bonds will be issued as Sustainability Bonds in accordance with the Framework, and the proceeds will be used for JICA’s paid-in financial cooperation projects (except for loans to coal-fired power generation projects).
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).
(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