May 20, 2015
Bureau of Finance,
Tokyo Metropolitan Government
Japan Exchange Group, Inc.
Announcement of Statements from the Governor of Tokyo and the Director & Representative Executive Officer, Group CEO of the Japan Exchange Group, Inc.
The public and private sectors are now working together on various initiatives to reinstate Tokyo as a global financial center in order to revitalize Tokyo and the Japanese economy.
Amid this situation, with the aim to diversify fund raising methods and lower funding cost as well as to enhance recognition of the TOKYO PRO-BOND Markett(*1) among domestic and foreign financial professionals, the Tokyo Metropolitan Government decided to issue foreign-currency municipal bonds and conduct dual listing on the Market and a foreign market.
Following approval from Tokyo Stock Exchange, Inc.(*2), the bonds have been listed in the TOKYO PRO-BOND Market today. This is the first listing of Eurodollar bonds(*3) for the TOKYO PRO-BOND Market. As a result, the bonds were able to attract the interest of investors and secured sufficient demand.
The Governor of Tokyo and the Director & Representative Executive Officer, Group CEO of Japan Exchange Group, Inc. have announced statements to actively convey information on this bond issue and the TOKYO PRO-BOND Market both domestically and internationally in order to deepen understanding of the Market.
*1.The TOKYO PRO-BOND Market is a market for institutional investors, etc. operated by Tokyo Stock Exchange, Inc.
*2.Tokyo Stock Exchange, Inc. is a subsidiary of Japan Exchange Group, Inc. and an operating body of the TOKYO PRO-BOND Market.
*3.US dollar-denominated bonds offering for investors in global bond markets excluding those in the United States.
Attachment 1: Galvanizing the TOKYO PRO-BOND Market through the dual listing of foreign-currency municipal bonds of the Tokyo Metropolitan Government
Attachment 2: TOKYO PRO-BOND Market Initiatives for Realizing the “Tokyo Global Financial Center” Concept
(1) Overview of the TOKYO PRO-BOND Market
|Operating body||Tokyo Stock Exchange, Inc.|
|Purpose of establishment||To contribute to the development of the Japanese bond market into a central part of Asia’s financial markets by enabling the flexible and timely issuance of bonds, as seen in the euro market, and providing more convenience to issuers, investors, securities companies and other market participants both in Japan and overseas.|
|Listings||Program listings: 13
Bond listings: 12
(2) Overview of foreign-currency municipal bonds issued by the Tokyo Metropolitan Government
Following the end of WWII, the Tokyo Metropolitan Government has been issuing foreign-currency municipal bonds continuously since 1964. A summary of the current issuance is as follows.
|Amount of issue||1.0 billion dollars
*The Tokyo Metropolitan Government converted the net proceeds of the dollar-denominated bonds into yen at the issue to fix expenses up to the redemption (no foreign exchange risk).
|Term||5 years (redemption May 19, 2020)|
|Listing Markets||TOKYO PRO-BOND Market, London Stock Exchange|
|Date of Issuance
|May 19, 2015|
|Date of Listing||May 20, 2015|
|Joint Bookrunners||BARCLAYS BANK PLC
MERRILL LYNCH INTERNATIONAL
DEUTSCHE BANK AG, LONDON BRANCH
NOMURA INTERNATIONAL PLC
The Long-Term Vision for Tokyo
This project is related to the Long-Term Vision for Tokyo, Strategy 6, Approach 15, which aims to transform Tokyo into a leading global metropolis.
●The purpose of this press release is to make a general public announcement on the issuance of Tokyo Metropolitan Government bonds, and it has not been prepared for the purpose of soliciting investment. In addition, this press release does not constitute an offering of the municipal bonds.
(Tokyo Metropolitan Government bonds)
Bond Section, Budget Division, Bureau of Finance, Tokyo Metropolitan Government
Phone:+81-3-5388-2683 (direct line)
(TOKYO PRO-BOND Market)
New Listing Department Tokyo Exchange Group, Inc.
Phone:+81-3-3666-0141 (main switchboard)