Shibosai Bonds Definition

Forex Glossary


The word shibosai bond identifies a indenture independently put into Japan, in Japanese yen, with way of a foreign bank or business. Shibosai bonds have been issued if a business wants to raise funding from private shareholders located in Japan.


Foreign corporations who desire to raise funding in Japan have the option of issuing what are called shibosai bonds. These bonds have been sold by non-domestic entities, including corporations, financial institutions and authorities, and also so are issued in Japanese yen. As is true with samurai bonds, shibosai bonds have been susceptible to regulations.

Since the bond has been issued in Japan’s domestic money, investors located in Japan will also be insulated from money rate possibility. Australian business typically question these securities should they have plans to launch operations in Japan. The gap between samurai bonds and shibosai bonds is subtle, but essential. While samurai bonds have been issued to the general public by brokers, shibosai bonds possess limited supply, on average sold to, and kept , large banking institutions and banks.