Japan's JICA to Issue $305 Million Bond Next Year, Nikkei Says

By Aya Takada

Nov. 9 (Bloomberg) -- The Japan International Cooperation Agency will issue its first-ever bond by March, raising up to 30 billion yen ($305 million), the Nikkei newspaper said today.

JICA, which runs the nation's Official Development Assistance (ODA) program, may also issue a 50 billion yen bond in the fiscal year beginning in April and gradually expand such offerings, the newspaper said, citing unnamed agency sources.

The bond will likely have a maturity of 20 to 30 years, as yen loans extended through the ODA are usually repaid over a 30- year period, Nikkei said. The issuance will be aimed at life insurers, pension funds and other institutional investors, it said, and the agency picked Mitsubishi UFJ Securities Co. and Goldman Sachs Group Inc. as joint underwriters.

JICA, which sends volunteers to developing countries as well as running grant and loan programs, is the world's biggest development aid agency, with $10.3 billion in operations, according to its Web site.

To contact the reporter on this story: Aya Takada in Tokyo atakada2@bloomberg.net.