NR/2007-54
October 3, 2007

Guarantee for Ringgit Bond Issue of Japanese Subsidiary in Malaysia--JBIC Continues to Promote Asian Bond Market Initiative--

1. Japan Bank for International Cooperation (JBIC; Governor: Koji Tanami) provided aguarantee today for the ringgit-denominated bond issued by ORIX Leasing Malaysia
Berhad (OLM; Head Office: Kuala Lumpur), a Malaysian corporation, in which ORIX
Corporation has an equity stake.
2. The corporate bond amounting to 200 million ringgit (approximately 6.9 billion yen)issued by OLM are guaranteed by ORIX Corporation, the parent company of OLM,
with a secondary guarantee provided by JBIC and the Labuan Branch of the Bank ofTokyo-Mitsubishi UFJ, Ltd. The proceeds from the bond issuance will be utilized for
OLM's leasing and other business for Japanese products. This is the second bondissue by OLM in the Malaysian capital market with JBIC's guarantee facility, following
the first issue in January 2006. (See Appendix for its schematic illustration.)
3. With its leasing business expanding in parallel with the recent robust growth of theMalaysian economy, OLM vigorously addresses the ringgit-denominated bondissuance to diversify its funding instruments. In Asian countries, however, as bondmarkets are still at the developing stage, Japanese companies often find difficulties inefficient bond financing, resulting in limited funding instruments. Even in Malaysia
where the bond market is relatively developed among these countries, credit
enhancement provided by an official finance institution such as JBIC can be effective
for bond issuance. JBIC is thus supporting bond issue by Japanese affiliates in thelocal markets with the use of its guarantee facility to diversify their funding instruments
as well as help develop local bond markets.
4. JBIC continues to be active in promoting the Asian Bond Market Initiative(ABMI).[1] ABMI was proposed by the Government of Japan in December 2002 andvarious efforts to develop bond markets have been underway under this initiative
within the framework of ASEAN+3 (Japan, China and Korea).[2] This guarantee,
following the first in January 2006, is an effort under the ABMI to help developing
Malaysia's bond market and contribute to developing a favorable environment forJapanese companies' overseas business.[1] The Asian Bond Market Initiative was launched as a measure to prevent therecurrence of 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 are underway among the governments of ASEAN+3 (Japan, China andKorea) countries on ways to develop and invigorate bond markets in Asian countries.
[2] JBIC's financing activities under the ABMI are as follows:
June 2004: Provision of a guarantee for baht-denominated bond issued by aJapanese affiliate in Thailand.
December 2004: Provision of a guarantee for Korean collateral bond obligations.
September 2005: Issuance of baht-denominated bond in the Thai market for funding
the provision of a two-step loan in baht for Japanese banks.
January 2006: Provision of a guarantee for ringgit-denominated bond issued byOLM.
March 2006: Provision of a guarantee for rupiah-denominated bond issued by aJapanese affiliate in Indonesia.
March 2007: Provision of a guarantee for rupiah-denominated bond issued by aJapanese affiliate in Indonesia.

For further informationMr. 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