The Japan International Cooperation Agency (JICA) announced plans to issue an agri bond during November, with the use of proceeds limited to the agriculture and fisheries sectors. The issue is expected to total approximately ¥10 billion and have a 2-year maturity, with the proceeds allocated to concessional financing projects in the agriculture and fisheries sectors of developing regions.
The Japan International Cooperation Agency (JICA) plans to issue an agri bond during November, with the use of proceeds limited to the agriculture and fisheries sectors. The bond would be an unusual agriculture-related issuance by a domestic issuer and is expected to support Japan's food security by assisting producers in developing countries.
The issue size is expected to be approximately ¥10 billion, with a 2-year maturity. JICA will proceed with the issuance in line with its Sustainability Bond Framework.
The background includes rising geopolitical risks and the worsening global food shortage caused by climate change. Reports by the FAO and WFP indicate that some of the world's population is experiencing hunger, while projections suggest that global food demand will increase by 2050.
Support for the agriculture and fisheries sectors in developing regions is expected to be the focus of funding as part of efforts to strengthen Japan's domestic food security.