Japan Bank for International Cooperation (JBIC), the international wing of the Japan Finance Corporation, has announced it will provide guarantee for yen-denominated foreign bonds equivalent to Rs 1,095 crore, issued by the Export-Import (Exim) Bank of India in the Japanese bond market.
The guarantee was extended under JBIC’s Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility. This is the first guarantee for Samurai bonds issued by a government agency under the GATE facility, as well as the first guarantee for Samurai bonds for an Indian issuer. GATE enables JBIC to acquire samurai bonds and provide partial guarantees for samurai bond issues. GATE will support foreign governments and government agencies to raise funds in the Tokyo market.
JBIC has been supporting samurai bonds issued by foreign governments since May, 2009, under the Market Access Support Facility (MASF).