Moneyzine
Contents
/Investment Guides /Shibosai Bonds

Shibosai Bonds

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 21st, 2023
Advertiser Disclosure

Definition

The term shibosai bond refers to an indenture privately placed in Japan, in Japanese yen, by a foreign bank or corporation. Shibosai bonds are issued when a corporation wishes to raise capital from private investors located in Japan.

Explanation

Foreign corporations that wish to raise funds in Japan have the option of issuing what are known as shibosai bonds. These bonds are sold by non-domestic entities, including corporations, financial institutions and governments, and are issued in Japanese yen. As is the case with samurai bonds, shibosai bonds are subject to local regulations.

Since the bond is issued in Japan's domestic currency, investors located in Japan are also insulated from currency rate risk. Foreign companies will typically issue these securities if they have plans to establish operations in Japan. The difference between samurai bonds and shibosai bonds is subtle, but important. While samurai bonds are issued to the public via brokers, shibosai bonds have limited distribution, typically sold to, and held by, large financial institutions and banks.

Related Terms

Formosa bond, kimchi bond, Uridashi bond, shogun bond, Eurobond

Explore Investing Further

Related Content

  • Biden Or Trump: Who Is Better For The Economy And Stocks?
    Yup. This is one of those articles. It's an election year, and here in the U.S., we get to decide which old dude who’s been alive long enough to remember when there were only 48 states in the U.S. will be the leader of the free world.
    March 19th, 2024
  • When it comes to strategic business planning, accounting is front and center, shaping the course of action. At least it should be.
    March 14th, 2024
  • DRIP Brokers: Best Brokers for Dividend Investing for November 2024
    Reinvesting dividends could mean compound growth for your portfolio. But reinvesting them manually can be a hassle. This is why you could benefit from a dividend reinvestment plan (DRIP).
    March 12th, 2024
  • How To Invest in Real Estate Without Becoming a Landlord
    We all know that in order to build wealth and prepare for retirement, investing is the key. However, it can be hard to figure out what to invest in and how to put your money to good use. One of the most talked about ways to build wealth is owning property and being a landlord to bring in passive income. But what if you don’t want to do that? You can still invest in real estate!
    March 6th, 2024
  • Investing In Nature: The Closest You'll Get To Your Money Growing On Trees
    ESG (Environmental, Social, and Governance) has become a polluted word for many traders and investors - but that doesn't mean it's going completely away. Nor does that mean you can't profit from nature or sustainable practices. But there are some opportunities in the regenerative ag, conservation, and green real estate spaces.
    February 29th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.