Japan International Cooperation Agency (JICA) has decided to issue the 83rd and 84th JICA Bonds (Domestic FILP Agency Bonds) to institutional investors. The bonds will be issued as “Africa-TICAD Bonds” and the proceeds will be allocated to the paid-in capital cooperation projects for Africa. In addition, the Joint Lead Managers for the issuance have been selected as follows (except for the Administrative Lead Managers, in alphabetical order).
Mitsubishi UFJ Morgan Stanley Securities Co.
Okasan Securities Co.
Nomura Securities Co.
Mizuho Securities Co.
Africa, which is expected to account for a quarter of the world’s population by 2050, is attracting attention as a promising future market due to its abundant mineral resources and high growth potential backed by population growth. At the same time, however, the country’s economy and society are becoming increasingly vulnerable due to frequent natural disasters caused by climate change, soaring energy and food prices due to the situation in Ukraine, and worsening debt problems caused by global inflation and rising interest rates. The Japanese government has launched the Tokyo International Conference on African Development (TICAD) as an open forum for international organizations, the private sector, and civil society to participate in order to realize independent and sustainable growth in Africa, and JICA has positioned the promotion of TICAD as a framework for cooperation in Africa. Although “promotion of private investment” is one of the key themes of TICAD, investment in Africa is still limited compared to other regions.
Seizing the opportunity of the 9th Tokyo International Conference on African Development (TICAD 9) to be held in Yokohama in August 2025, JICA will issue this bond as “Africa-TICAD Bond” to support Africa’s independent and sustainable growth and promote private capital mobilization. The bonds are scheduled to be issued in August 2025. JICA and the co-lead managers will work together to determine the details of the bond issue, taking into account market conditions and other factors.
The Bonds will be issued as Sustainability Bonds (Note) based on the “JICA Social/Sustainability Bond Framework” (announced on April 7, 2023), and the proceeds will be used for the Organization’s paid-in capital cooperation projects in Africa (excluding the loans to coal-fired power generation projects The proceeds will be used for the JBIC’s African funded cooperation projects (excluding loans for coal-fired power generation projects).
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) Sustainability bonds are bonds issued to finance projects that contribute to solving social and environmental issues, and are eligible for SDGs and ESG investments.
(In charge)
Finance Department Finance Section 1
(tel: 03-5226-9279)
© Source JICA
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