Development Bank of Japan to Issue 5 Billion Yen Regional Co-Creation Bonds
Development Bank of Japan will issue 5 billion yen in regional co-creation bonds on the 21st, open exclusively to local governments and companies in Hokkaido, Tokai, and Kyushu. About 10 purchasers, including Kasugai City in Aichi Prefecture and Omura City in Nagasaki Prefecture, have committed to buying. Proceeds will finance roughly 10 projects, including those of Nakamichi Lease in Sapporo and Nishi-Nippon Railroad in Fukuoka, supporting decarbonisation and disaster prevention. The bank plans to consider expanding the scheme to other regions.
Development Bank of Japan has decided to issue new regional co-creation bonds to raise funds for investment and financing in the Hokkaido, Tokai, and Kyushu regions. The bonds will be available only to local governments and companies in those regions. The issuance is designed to address challenges local governments face in managing public funds against a backdrop of rising interest rates, while promoting the circulation of regional capital and economic growth.
The proceeds will be used to finance companies that contribute to regional development in areas such as decarbonisation and disaster prevention. It is rare for a financial institution to issue bonds with both investors and investment destinations confined to the same region, and the bank will consider expanding the programme to other areas.
The bank will issue bonds totalling 5 billion yen on the 21st. About 10 local governments and companies, including Kasugai City in Aichi Prefecture and Omura City in Nagasaki Prefecture, have decided to purchase. The proceeds will go towards investment in about 10 projects, including those of Nakamichi Lease (Sapporo) and Nishi-Nippon Railroad (Fukuoka).