Tokyo: The South Korean government plans to issue samurai bonds for the first time in mid-September, adding to the current momentum of improving ties between South Korea and Japan, it was learned Wednesday.

The issue amount is currently expected to be around 20 billion yen, informed sources said.

Samurai bonds are denominated in yen and issued in the Japanese market by foreign governments, financial institutions and companies.

The issuance of samurai bonds by the South Korean government, if realized, is expected to give a boost to financial cooperation between the two countries, such as South Korean companies raising funds in the Japanese market and Japanese investment in South Korea becoming more active.

The move comes after the two governments held a ministerial session of their financial dialogue for the first time in about seven years in June and agreed to revive their currency swap agreement, under which they provide each other with foreign currencies in times of financial crisis.

Japan’s Mizuho Securities Co. and SMBC Nikko Securities Inc. will be among the lead underwriters for the South Korean government’s samurai bond issue.

On Friday, Japan, the United States and South Korea will hold a trilateral summit near Washington to confirm their commitment to strengthening economic and financial cooperation.

JIJI Press