The Japan International Cooperation Agency (JICA) (President: Akihiko Tanaka) has selected the following Joint Lead Managers for the issuance of the 70th JICA Bonds (10-year) to institutional investors.
Nomura Securities Co.
Okasan Securities Co.
Daiwa Securities Co.
Mitsubishi UFJ Morgan Stanley Securities Co.
(*Alphabetical order except for the administrative lead managers)
The bonds are scheduled to be issued in December 2022. Details will be discussed with the co-lead managers, while keeping an eye on the market environment and other factors.
This bond follows the characteristics of a social bond (Note 1). Social Bonds issued by the Institution are subject to a second opinion from a third-party institution (Note 2). The funds to be raised by the Bonds will be used for the Organization’s paid-in financial cooperation operations (except for loans to coal-fired power generation projects).
In addition, the Social Bonds to be issued by JBIC are positioned as financing to secure the funds necessary to achieve the SDGs in Japan’s “Revised Guidelines for the Implementation of the SDGs” (Note 3). The bonds are scheduled to be listed on the TOKYO PRO-BOND Market. As they 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, the bonds can be sold to all investors, including general investors. There are no restrictions on transfer, and the same treatment applies to secondary market transactions.
We will announce the result of the selection of the lead manager in early November.
(Note 1) The International Capital Market Association (ICMA) has published a definition of “social bond” (a bond that targets projects that contribute to solving social issues and requires disclosure of information on “use of funds,” “project evaluation and selection process,” “fund management,” and “reporting”) as The Social Bond Principles. The Social Bond Principles are published by the International Capital Market Association (ICMA) as a set of social bond principles.
(Note 2) Second opinion issued by: The Japan Research Institute, Ltd.
(Note 3) 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, and 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
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