• News Release
• Apirl 1. 2003
• Development Bank of Japan

DBJ Investing in Tokyo Metropolitan Government CBO

The Development Bank of Japan (DBJ) has extended investment funds to support the creditworthiness of a Collateralized Bond Obligation (CBO) initiated by the Tokyo Metropolitan Government as part of its new financial market plan.

Mizuho Bank worked as arranger and originator, issuing CBO bonds worth 14 billion yen. These were backed by non-guaranteed bonds of 189 private companies, worth a total of 15.06 billion yen.

DBJ, having conducted its own credit analysis, decided to invest in part of the subordinated tranche in order to raise the creditworthiness of the CBO. As a neutral and fair investor, DBJ is also expected to monitor the CBO for the two years until the bonds' redemption.

This is the first CBO ever designed and initiated by a local government. Its issuance, backed by the non-guaranteed bonds of private companies, represents an important step in the effort to promote the growth of small and mid-sized companies by enabling them to gain access to a diversity of fundraising sources.

For further details, please refer to the homepages below:

Tokyo Metropolitan Government Website
http://www.sangyo-rodo.metro.tokyo.jp/clo/sub1-1-1E.htm (English)

Mizuho Bank Website
http://www.mizuhobank.co.jp/link/release1.html (Japanese)

• DBJ Directory
  • Project Finance Department
  • Tel: 03-3244-1619
  • Planning Department for Regional Development
  • Tel: 03-3244-1767