NR/2006-98
March 8, 2007

Guarantee for Rupiah Bonds Issued by Japanese Affiliate in Indonesia--JBIC Continues to Promote Asian Bond Market Initiative--

1. Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa)
today provided a guarantee for the rupiah-denominated bonds issued by P.T. Summit
Oto Finance (SOF), an Indonesian corporation in which Sumitomo Corporation has
equity stakes.
2. The corporate bonds totaling 1 trillion rupiah (about 13 billion yen) issued by SOF isguaranteed by Sumitomo Mitsui Banking Corporation, with a secondary guarantee byJBIC. The proceeds of bond issue will be used for SOF's consumer financing, tofinance the purchase of Japanese motorcycles. This is the second bond issued by
SOF in the Indonesian capital market, following the first one that SOF issued bymaking use of JBIC's guarantee facility in March 2006 (For its schematic illustration,see Appendix).
3. SOF's business operations have been rapidly expanding in parallel with the recent
robust growth of the motorcycle sales market in Indonesia. As part of efforts todiversify its finance instruments, SOF vigorously addresses the rupiah-denominatedbond issuance. In many Asian countries, however, underdeveloped bond markets
have often made it difficult for Japanese affiliates to raise funds with bond issuance,and Indonesia is no exception. To facilitate their bond issuance, JBIC, in its capacity
as an official financial institution, is called on to provide credit enhancement. It isagainst this background that JBIC decided to utilize its guarantee facility in support of
SOF's successful and continued bond issue in the local market.
4. JBIC has been active in promoting the Asian Bond Market Initiative (ABMI), 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). As the second such effort in Indonesia underthe ABMI, following the first one last year, this guarantee will help develop thecountry's bond market, and contribute to developing a favorable environment forJapanese companies' overseas business development.

[1] Publicly-issued bonds scheduled to be listed on the Surabaja Sock Exchange, thelargest bond market in Indonesia.
[2] 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 savings rate, into 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.
[3] 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 bond obligations.
September 2005: Issuance of baht-denominated bonds in the Thai market for funding theprovision of a two-step loan in baht for Japanese banks.
January 2006: Provision of a guarantee for ringgit-denominated bonds issued by aJapanese affiliate in Malaysia.
March 2006: Provision of a guarantee for rupiah-denominated bonds issued by SOF.

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