#Japan #Tokyo #Daiwa Securities #Hyogo Prefecture #Disaster Bonds

Hyogo Prefecture's Disaster Bonds: A Strong Step Towards Resilience

Daiwa Securities Co., Ltd., headquartered in Chiyoda, Tokyo, has announced that institutional investors can purchase Hyogo Prefecture's disaster bonds, scheduled for issuance in July 2025. This initiative arises in the wake of the 30th anniversary of the Great Hanshin-Awaji Earthquake, underscoring the importance of disaster preparedness and community safety.

What are Disaster Bonds?

The disaster bonds, officially named Hyogo Prefecture Reiwa 7 Fiscal Year Disaster Bonds, have a tenure of 10 years and are set to raise a total of 10 billion yen. Each bond unit is valued at 10 million yen, providing a significant opportunity for investors looking to make impactful contributions towards the enhancement of disaster response capabilities in Hyogo.

These bonds will be available for purchase at eight Daiwa Securities branches across Hyogo Prefecture and through their offices nationwide. Institutional investors who participate will have the option to express their intent of investment, and their company names will be featured on the Hyogo Prefecture website subsequently, reflecting their commitment to disaster resilience.

Commitment to Community Safety

The funds raised from these bonds will be allocated to various initiatives aimed at strengthening the disaster preparedness and response measures in Hyogo. The prefecture is devoted to enhancing public safety and ensuring that the lessons learned from past earthquakes continue to inform their current strategies. This commitment not only aims to secure the community’s future but also seeks to promote the concept of creative reconstruction, allowing for a better, more resilient state.

The disaster bonds differ from Hyogo Prefecture's green bonds and do not follow the International Capital Market Association (ICMA) principles for third-party evaluations. It is vital for interested investors to understand the nature of these bonds and the associated risks and costs involved.

Important Considerations for Investors

Investors should be aware that engaging in bond purchases may entail additional fees and risk factors related to market fluctuations. The contractual obligations may also require various charges based on the type of investment. For instance, trading stocks may involve a brokerage fee of up to 1.265%. In the case of foreign stocks, domestic referral fees along with possible local taxes may also apply. Moreover, market changes can lead to potential losses, making it crucial for investors to comprehend the financial landscape before proceeding.

How to Purchase the Bonds

For institutional investors interested in contributing towards Hyogo’s disaster preparedness through these bonds, Daiwa Securities is readily available to provide information and support regarding the purchase process. The bonds are projected to be issued in July 2025. Keep in mind that there may be changes in details leading up to the issuance date, so staying in touch with the company is essential.

For inquiries and further details about the investment in these disaster bonds, potential investors are encouraged to reach out to the nearest Daiwa Securities branch.

Conclusion

Participating in Hyogo Prefecture’s disaster bonds signifies a proactive approach to community safety and resilience. As Japan reflects on its past challenges, investing in such initiatives not only embodies corporate responsibility but also fosters a secure environment for future generations. By supporting Hyogo’s efforts in strengthening its disaster response capabilities, institutional investors can make a commendable impact on society.

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