Issue of Debt

RNS Number:1276R
Japan Bank for Intl Cooperation
12 September 2005





                          JBIC Issues Thai Baht Bonds

                 --First Asian Currency Bond Issue under ABMI--



1.      Japan Bank for International Cooperation (JBIC; Governor: Kyosuke
Shinozawa) signed on August 30, 2005 an agreement on the issuance of Japanese
government-guaranteed, fixed interest Thai baht bonds in Bangkok.



2.      The baht bonds were issued under the Asian Bond Markets Initiative
(ABMI) being promoted by the Japanese government under the framework of ASEAN+3
(Japan, China and Korea).  This is the first Asian currency bond issuance
undertaken by the Japanese issuer in line with the ABMI.  In May 2004, the
Government of Thailand indicated the guidelines for approving, on an individual
basis, bond issuance by foreign governments and official financial institutions.
  JBIC thereafter went through a series of discussions with Thai officials and
obtained approval for baht bond issuance.  Accordingly, JBIC made preparations
and, after monitoring market conditions, took this particular timing to issue
baht bonds.  This is the first Asian currency bond issuance by a foreign
government or government agency in line with the ABMI.



3.      The baht funds obtained from this issuance will be used for financing
business operations of Japanese firms in Thailand through Bangkok branches of
Japanese commercial banks (Tokyo-Mitsubishi Bank, Mizuho Corporate Bank and
SMBC).  This issuance has made it possible to provide local currency financing
without currency exchange risk.  It is thus expected to meet the extensive
financial needs of local Japanese affiliates.



4.      JBIC considers it an important task to support bond market development
in ASEAN member countries as well as China and Korea within the framework of the
ABMI. In addition, bond issuances in local capital markets enable the bank to
meet increasingly diverse financial needs of Japanese firms through local
currency lending.  JBIC is therefore committed to increasing Asian currency bond
issuances and local currency lending to meet such financial needs based on
consultations with the authorities in individual countries.



5.      The following is the main terms of the bonds.



Amount                      3 billion THB

Market                      Thai market

Maturity                     5 years (bullet repayment due on September 7, 2010)

Coupon Rate                 4.78 %

Issue price                 100%

Guarantor                   Government of Japan

Listing                     The Thai Bond Dealing Centre
Syndicate                   Citicorp Securities and Siam

Commercial Bank (Lead Arrangers); Capital Nomura Securities and TISCO Securities
"Co-Managers"



For further information, please contact Mr.Sekine and Mr.Narumiya Capital Markets Division

(Tel: Tokyo 5218-3304/ Fax: Tokyo 5218-3960).






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