Japan to Issue Government Bonds Worth 950 Billion Yen as Follow-up to U.S. Investment

Additional Capital Injection of 100 Billion Yen in Supplementary Budget

The Japanese government is planning to issue government bonds worth over 1 trillion yen (approximately 950 billion yen) to strengthen the financial base of Nippon Export and Investment Insurance (NEXI) in connection with its promised investment of $550 billion (about 816 trillion won) in the United States following the conclusion of trade negotiations with the U.S.

Donald Trump, President of the United States (left), and Sanae Takaichi, Prime Minister of Japan. Photo by UPI Yonhap News

According to the Nihon Keizai Shimbun and other sources on December 23, the Japanese government is discussing a plan to issue special government bonds called "kyofu kokusai" (grant bonds) worth over 1 trillion yen to reinforce the financial base of Nippon Export and Investment Insurance, which will support Japanese companies' local business operations in the United States under the U.S. investment agreement.

In July, Japan concluded tariff negotiations with the United States and pledged to invest $550 billion in the U.S. The Japanese government announced that it would provide funding and loans for related projects through Nippon Export and Investment Insurance and the Japan Bank for International Cooperation (JBIC). Nippon Export and Investment Insurance is a government-funded special corporation that provides trade insurance for exports, imports, and overseas investments.

The Nihon Keizai Shimbun reported, "Kyofu kokusai are government bonds that can be converted into cash as needed," adding, "Together with the additional capital injection of 100 billion yen included in the fiscal 2025 supplementary budget, this will strengthen the financial base of Nippon Export and Investment Insurance."