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LeoGlossary: Samurai Bond

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A yen-denominated bond issued in Tokyo by a non-Japanese borrower.

It gives the institution access to Japanese capital in YEN which can be used for purposes outside the country. This is often done to reduce foreign exchange risk.

When issuing debt, costs are a major factor. Companies might turn to these bonds if the cost of issuance is lower as compared to financing elsewhere.

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