Japan International Cooperation Agency (JICA) (President: Akihiko Tanaka) today announced that the terms and conditions of the 73rd and 74th JICA Bonds (Domestic FILP Agency Bonds) were determined as follows
The 73rd Japan International Cooperation Agency Bond
Issue amount: 15 billion yen
Term: 10 years (redeemable on March 18, 2033)
Issue Date: June 23, 2023
Interest rate: 0.681%.
Issue price: 100 yen per 100 yen par value
Applicant yield: 0.681%.
Collateral: General collateral
Listing: TOKYO PRO-BOND Market
Co-lead managers: Nomura Securities (administrative lead manager), SMBC Nikko Securities Inc.
Rating: Rating and Investment Information, Inc.: AA+, Standard & Poor’s Ratings Japan K.K.: A+
The 74th Japan International Cooperation Agency Bonds
Issue amount: 10 billion yen
Term: 20 years (redeemable on March 20, 2043)
Issue Date: June 23, 2023
Interest rate: 1.110%.
Issue price: 100 yen per 100 yen par value
Applicant yield: 1.110%.
Collateral: General collateral
Listing: TOKYO PRO-BOND Market
Co-lead managers: Daiwa Securities (administrative lead manager), SMBC Nikko Securities Inc.
Rating: Rating and Investment Information, Inc.: AA+, Standard & Poor’s Ratings Japan K.K.: A+
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).
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