NR/2005-71
January 25, 2006

Guarantee for Ringgit Bonds Issued by a Japanese Affiliate in Malaysia--Promoting the Asian Bond Market Initiative--

1. Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa)provided a guarantee today for the ringgit-denominated bonds issued by ORIX
Leasing Malaysia Berhad (OLM; Head Office: Kuala Lumpur), a Malaysian
corporation in which ORIX Corporation has equity stakes. The corporate bonds
totaling 150 million ringgit (about 4.5 billion yen) that were issued by OLM areguaranteed by ORIX Corporation, the parent company of OLM, with a secondary
guarantee by JBIC and the Labuan Branch of the Bank of Tokyo-Mitsubishi UFJ,
Ltd. The proceeds of the bond issue will be used for OLM's leasing business forJapanese and other products, which has been expanding in parallel with the recent
robust growth of the Malaysian economy. (For a schematic illustration of this, see theAppendix.)
2. Japanese affiliates operating in Asian countries seek to fund their businesses inlocal currencies to avoid exchange risks. Throughout these different countries,
however, underdeveloped bond markets have made it difficult for these companies toraise funds with bond issuance, and therefore their financing methods have been
limited. Even in Malaysia where the bond market is relatively mature, since even
Japanese firms with good credit standing do not necessarily have high namerecognition in local securities markets, there is a need for JBIC, a Japanese
governmental financial agency, to complement their efficient bond issuances. To
meet these needs of Japanese affiliates for increasingly diverse financing modalities,
JBIC is utilizing its guarantee facility this time to support successful bond issue in thelocal market.
3. JBIC has been active in promoting the Asian Bond Market Initiative (ABMI),[1]which was proposed by the Government of Japan in December 2002 and under which
various efforts to develop bond markets have been underway within the framework ofASEAN+3 (Japan, China, and Korea).[2] As the first such effort in Malaysia under theABMI, this guarantee will help develop the country's bond market, and the use of
JBIC's guarantee facility will contribute to the promotion of the ABMI.

[1] The Asian Bond Market Initiative was launched as a measure to prevent the recurrenceof the Asian currency crisis by channeling funds in the Asian region, which is characterized
by a high saving rate, to investments within the region. Currently, discussions areunderway among the governments of ASEAN+3 (Japan, China and Korea) countries onways to develop and invigorate bond markets in Asian countries.
[2] JBIC has made the following contributions to the ABMI to date:June 2004: Provision of a guarantee for baht-denominated bonds issued by Japaneseaffiliates in Thailand.
December 2004: Provision of a guarantee for Korean collateral bonds obligations.
September 2005: Issuance of baht-denominated bonds in the Thai market and provision ofbaht-denominated two-step loans for Japanese banks by using the proceeds of the bonds.

For further information
Mr. Okuda and Ms. Tamura
Press and External Affairs Division,
Public Relations Office,
Policy Planning and Coordination Department
Tel:03-5218-3100
Fax:03-5218-3955