Development Bank of Japan Bond (FILP agency bond) Issues No. 42

1. Overview

On December 5, 2007, DBJ (Governor: Minoru Murofushi) decided on terms for issuing No. 42 FILP agency bonds (publicly issued bonds without government guarantee).

2. Bond issue details

Issue
amount

\10.0 billion

Term

20-year
(December 10, 2027 redemption)

Coupon rate

2.25%

Issue price

\100.00

Collateral

General collateral

Issue date

December 11, 2007

Ratings

Rating and Investment Information, Inc.	AA
Japan Credit Rating Agency, Ltd.	AAA
Moody' Investor Service Inc.	Aaa
Standard and Poor's (S&P)	AA－

Lead-managing underwriters

Co-lead managers Merrill Lynch Japan Securities Co., Ltd. and Credit Suisse Securities (Japan) Limited

3. Issues Expected during the Fiscal Year

In fiscal 2007, DBJ plans to issued FILP agency bonds of up to a maximum of \290.0 billion. (Prior to this issue, the DBJ's issue totaled \260.0 billion.)In the future, we will strive to issue bonds as appropriate given the market environment and other factors.

Reference: History of FILP agency bond issuance

(Portion issued in the Japanese market)

	Date terms determined	Term	Issue amount	Interest rate	Issue price	Investor yields	Spread against JGBs at launch
No. 1 bonds	01/9/11	5-year	\50.0 billion	0.60%	\99.99	0.603%	+10bp
No. 2 bonds	02/1/22	5-year	\50.0 billion	0.78%	\99.96	0.787%	+10bp
No. 3 bonds	02/4/8	5-year	\50.0 billion	0.67%	\99.98	0.673%	+10bp
No. 4 bonds	02/7/17	5-year	\50.0 billion	0.52%	\99.98	0.523%	+9bp
No. 5 bonds	02/10/10	10-year	\50.0 billion	1.23%	\99.93	1.238%	+11bp
No. 6 bonds	03/1/15	5-year	\50.0 billion	0.41%	\99.98	0.413%	+7bp
No. 7 bonds	03/4/10	10-year	\60.0 billion	0.78%	\99.95	0.785%	+10bp
No. 8 bonds	03/7/30	5-year	\50.0 billion	0.40%	\99.96	0.407%	+5bp
No. 9 bonds	03/10/16	10-year	\50.0 billion	1.58%	\99.99	1.581%	+12bp
No. 10 bonds	03/12/3	7-year	\20.0 billion	1.17%	\99.94	1.178%	+10bp
No. 11 bonds	03/12/3	15-year	\10.0 billion	1.83%	\99.94	1.834%	+17bp
No. 12 bonds	04/1/22	5-year	\50.0 billion	0.68%	\99.99	0.681%	+11bp
No. 13 bonds	04/4/16	10-year	\50.0 billion	1.59%	\99.96	1.594%	+8bp
No. 14 bonds	04/7/27	5-year	\50.0 billion	0.99%	\99.96	0.998%	+9bp
No. 15 bonds	04/8/24	4-year	\30.0 billion	0.64%	\99.99	0.642%	+7bp
No. 16 bonds	04/10/15	10-year	\50.0 billion	1.52%	\99.97	1.523%	+8bp
No. 17 bonds	04/12/1	7-year	\20.0 billion	1.05%	\99.98	1.052%	+6bp
No. 18 bonds	05/1/19	5-year	\40.0 billion	0.62%	\99.95	0.629%	+6bp
No. 19 bonds	05/4/15	10-year	\50.0 billion	1.40%	\99.97	1.403%	+7.5bp
No. 20 bonds	05/07/27	15-year	\10.0 billion	1.70%	\99.88	1.709%	+10bp
No. 21 bonds	05/07/27	5-year	\50.0 billion	0.57%	\99.96	0.577%	＋6bp
No. 22 bonds	05/08/11	6-year	\30.0 billion	0.92%	\99.95	0.928%	+5.5bp
No. 23 bonds	05/10/14	4-year	\20.0 billion	0.77%	\99.99	0.772%	+5.5bp
No. 24 bonds	05/10/14	10-year	\40.0 billion	1.65%	\99.96	1.654%	+8bp
No. 25 bonds	06/08/30	5-year	\35.0 billion	1.41%	\100.00	1.410%	+24bp
No. 26 bonds	06/10/11	5-year	\80.0 billion	1.40%	\99.97	1.406%	+21bp
No. 27 bonds	06/11/9	10-year	\20.0 billion	1.98%	\99.95	1.985%	+26bp
No. 28 bonds	07/01/25	5-year	\50.0 billion	1.30%	\99.97	1.306%	+12bp
No. 29 bonds	07/01/25	10-year	\20.0 billion	1.86%	\99.93	1.867%	+20bp
No. 30 bonds	07/03/13	12-year	\10.0 billion	1.93%	\99.98	1.931%	+17bp
No. 31 bonds	07/03/14	30-year	\20.0 billion	2.63%	\99.94	2.633%	+35bp
No. 32 bonds	07/04/11	5-year	\40.0 billion	1.33%	\99.98	1.334%	+12bp
No. 33 bonds	07/04/11	10-year	\25.0 billion	1.80%	\99.93	1.807%	+14bp
No. 34 bonds	07/04/20	30-year	\15.0 billion	2.67%	\100.00	2.670%	+32bp
No. 35 bonds	07/5/9	40-year	\20.0 billion	2.74%	\99.85	2.746%	+40bp
No. 36 bonds	07/5/22	20-year	\10.0 billion	2.23%	\99.95	2.233%	+16bp
No. 37 bonds	07/5/23	7-year	\10.0 billion	1.55%	\99.95	1.557%	+11bp
No. 38 bonds	07/9/12	5-year	\20.0 billion	1.27%	\99.99	1.272%	+17bp
No. 39 bonds	07/9/12	10-year	\20.0 billion	1.75%	\99.91	1.760%	+20bp
No. 40 bonds	07/11/8	5-year	\20.0 billion	1.22%	\99.95	1.230%	+15bp
No. 41 bonds	07/11/8	10-year	\20.0 billion	1.73%	\99.96	1.735%	+18bp
No. 42 bonds	07/12/5	20-year	\10.0 billion	2.25%	\100.00	2.250%	+22bp

(Portion issued in overseas markets)

	Date terms determined	Term	Issue amount	Interest rate	Issue price	Investor yields	Spread against JGBs at launch
No. 1 bonds (Euroyen)	07/6/13	5-year	\50.0 billion	1.65%	\99.851	1.681%	+9bp