Japan Guarantees Government Bonds for Japan Expressway Holding and Debt Repayment Organization (JAPEX)
Tokyo, Japan – September 1, 2025 – The Ministry of Finance (MOF) today announced the government guarantee for the 521st issuance of bonds by the Japan Expressway Holding and Debt Repayment Organization (JAPEX). This significant development underscores the government’s commitment to supporting the nation’s vital expressway infrastructure and promoting sustainable finance through the issuance of social bonds.
The issuance, scheduled to be announced today, marks a crucial step in JAPEX’s ongoing efforts to manage its debt and fund the maintenance, repair, and improvement of Japan’s extensive expressway network. By providing a government guarantee, the MOF assures investors of the repayment of principal and interest, thereby enhancing the creditworthiness of the bonds and attracting a broader range of investors. This guarantee is instrumental in enabling JAPEX to secure favorable financing terms, which ultimately contributes to the efficient operation and development of the expressway system.
What makes this particular issuance noteworthy is its classification as a social bond. Social bonds are debt instruments specifically designed to raise capital for projects with positive social outcomes. In this context, the funds raised through these bonds are expected to be directed towards initiatives that contribute to social well-being, such as:
- Enhancing public safety: Investments in infrastructure improvements that reduce the risk of accidents and ensure the safe passage of vehicles.
- Improving accessibility and connectivity: Projects that expand and modernize the expressway network, facilitating smoother transportation and economic activity across regions.
- Supporting disaster resilience: Allocating resources towards strengthening infrastructure against natural disasters, ensuring continued operational capacity during emergencies.
- Promoting sustainable transportation: Potentially funding projects that contribute to environmental goals within the transportation sector, though the primary focus for JAPEX typically remains on infrastructure maintenance and debt repayment.
The Ministry of Finance’s decision to guarantee these social bonds reflects a strategic alignment with Japan’s broader policy objectives. The government is actively encouraging the growth of the sustainable finance market, recognizing its potential to mobilize private capital towards addressing societal challenges and achieving sustainable development goals. By supporting JAPEX’s issuance of social bonds, the MOF is not only bolstering critical infrastructure but also setting a positive precedent for other public entities looking to finance their projects through socially responsible means.
Investors can anticipate that these government-guaranteed JAPEX social bonds will offer a combination of security, liquidity, and a positive social impact. The government guarantee provides a strong layer of protection, making them an attractive investment option. Furthermore, the “social bond” designation appeals to a growing segment of the investment community that prioritizes environmental, social, and governance (ESG) factors in their portfolio decisions.
This announcement signifies a robust government backing for JAPEX’s crucial role in maintaining and developing Japan’s essential expressway infrastructure, while simultaneously fostering the development of the social bond market. It represents a prudent and forward-looking approach to national development and sustainable investment.
第521回日本高速道路保有・債務返済機構債券（ソーシャルボンド）に対する政府保証の付与
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財務省 published ‘第521回日本高速道路保有・債務返済機構債券（ソーシャルボンド）に対する政府保証の付与’ at 2025-09-01 06:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.