The Japan International Cooperation Agency (JICA) has decided to issue the 90th JICA Bond (Domestic Fiscal Investment and Loan Program Bond) for institutional investors as an “Agri-Bond,” with the proceeds to be allocated to concessional loan projects in the agriculture and fisheries sectors. In addition, the following institutions have been selected as joint lead managers for the issuance (listed in Japanese alphabetical order, except for the administrative lead manager).
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (Lead Manager)
Shinkin Securities Co., Ltd.
Nomura Securities Co., Ltd.
Against the backdrop of global population growth, rising geopolitical risks, and the ongoing effects of climate change, food security has become increasingly important. In developing countries, establishing sustainable food supply systems remains a major challenge due to factors such as declining productivity caused by climate change and fragile distribution and logistics infrastructure.
In its Development Cooperation Guidelines, the Japanese government has set forth the goal of strengthening the self-reliance and resilience of food security in developing countries, and JICA also provides support with agricultural and rural development as one of its priority areas. Furthermore, since Japan’s food supply relies heavily on imports, strengthening agricultural and rural development and food production infrastructure in developing countries contributes not only to the economic and social development of those nations but also to Japan’s own food security.
Against this backdrop, we are issuing this bond as an “Agri-Bond” with the aim of supporting the sustainable development of developing countries in the agriculture and fisheries sectors, while also promoting understanding of JICA’s initiatives in these sectors and expanding the mobilization of private-sector funds.
The bond issuance is scheduled for around November 2026. We will continue to discuss the details with the joint lead managers while assessing market conditions and other factors.
These bonds are being issued as sustainability bonds (Note) in accordance with the “JICA Social/Sustainability Bond Framework” (published on April 7, 2023), and the proceeds are scheduled to be allocated to concessional financing projects in the agriculture and fisheries sectors implemented by JICA (However, proceeds from bonds issued under this framework will not be used for coal-fired power generation projects.)
Please note that while these bonds are scheduled to be listed on the TOKYO PRO-BOND Market, they are FDI agency bonds that are exempt from the provisions of Chapter 2 of the Financial Instruments and Exchange Act and do not qualify as a private placement for qualified investors; therefore, they may be sold to all investors, including retail investors. There are no transfer restrictions, and the same terms apply to trading on the secondary market.
(Note) Sustainability bonds are bonds issued to finance projects that contribute to solving social and environmental issues. They are bonds that qualify for SDG and ESG investments.
(Person in Charge)
Finance Department, Paid Financial Services Division
(Phone: 03-5226-9279)
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