Bond Issuance Overview
The Ministry of Finance announced on September 3, 2025, that it will provide government guarantee for the 86th Development Bank of Japan Inc. Bond scheduled to be issued by the Development Bank of Japan Inc. in September.
Issuance Terms and Conditions
Issuance size and interest rate:
- Issue amount: 20 billion yen (6 billion yen more than the expressway agency bond)
- Coupon rate: 1.713% (same rate as the expressway agency bond)
- Issue price: 100.00 yen
- Yield to investors: 1.713%
Issuance and redemption schedule:
- Issue date: September 18, 2025
- Maturity date: September 18, 2035 (10-year bond)
Role of Development Bank of Japan
The Development Bank of Japan functions as a policy financial institution supporting Japan's economic development through long-term fund supply. The government holds a majority stake, providing funding for large-scale projects and growth sectors that are difficult for private sector financing. This bond is also issued as part of this function.
Significance as Government-Guaranteed Bond
Enhanced creditworthiness: Government guarantee enables stable fundraising from institutional investors Policy financial function: Providing infrastructure investment and innovation support funding as a complement to private financial institutions Market liquidity: Contributing to bond market trading activation with credit comparable to government bonds
This bond is positioned as an important fundraising instrument for maintaining and expanding the Development Bank of Japan's policy financial functions.