FISCAL AGENCY AGREEMENT AMONG DEVELOPMENT BANK OF JAPAN JAPAN THE BANK OF TOKYO-MITSUBISHI, LTD., LONDON BRANCH Fiscal Agent and Principal Paying Agent BANK OF TOKYO-MITSUBISHI TRUST COMPANY AND BANK OF TOKYO-MITSUBISHI (LUXEMBOURG) S.A. Paying Agent...
EXHIBIT 5.D.
AMONG
JAPAN
THE BANK OF TOKYO-MITSUBISHI, LTD., LONDON BRANCH
Fiscal Agent
and
Principal Paying Agent
BANK OF TOKYO-MITSUBISHI TRUST COMPANY
U.S. Representative of the Fiscal Agent
AND
BANK OF TOKYO-MITSUBISHI (LUXEMBOURG) S.A.
Paying Agent
Dated as of December 6, 2002
¥75,000,000,000
1.70% Japanese Yen Guaranteed Bonds due September 20,
2022
This FISCAL AGENCY AGREEMENT, is made as of December 6, 2002, in New York, New York, United States of America, among
the DEVELOPMENT BANK OF JAPAN (“Issuer”), JAPAN, THE BANK OF TOKYO-MITSUBISHI, LTD., LONDON BRANCH, a corporation organized and existing under the laws of Japan, as Fiscal Agent and Principal Paying Agent, BANK OF TOKYO-MITSUBISHI TRUST
COMPANY, a banking corporation organized and existing under the laws of the State of New York, as U.S. Representative of the Fiscal Agent, and BANK OF TOKYO-MITSUBISHI (LUXEMBOURG) S.A., a corporation organized and existing under the laws of
Luxembourg, as Paying Agent.
1. FORMS AND
DENOMINATIONS. (a) Issuer has agreed to issue ¥75,000,000,000 (seventy-five billion Japanese yen) principal amount of its 1.70% Japanese Yen Guaranteed Bonds due September 20, 2022 (collectively, the
“Securities”, or each, a “Security”). The Securities are issuable only in fully registered form, without coupons, in denominations of ¥1,000,000 and any integral multiple thereof, substantially in the form set forth in
Exhibit A-1 or A-2 hereto.
(b) Japan will unconditionally and irrevocably guarantee the payment of the principal
of and interest on the Securities, such guarantee of each Security to be evidenced by the form of guarantee annexed as Exhibit B hereto, executed by the facsimile signature of the Minister of Finance of Japan or of another duly authorized
representative of Japan. Japan agrees that each Security authenticated and delivered in accordance with the provisions hereof shall bear such guarantee.
(c) The Securities shall initially be issued in the form of (1) one or more fully registered global securities registered in the name of Cede & Co., as the nominee of The Depository Trust Company,
New York (“DTC”) (the “DTC Global Securities”), and (2) one fully registered global security registered in the name of TOKYOTRUST NOMINEES LIMITED, as the nominee of The Bank of Tokyo-Mitsubishi, Ltd., London Branch, as common
depositary for Euroclear Bank, S.A. / N.V., as operator of the Euroclear System (“Euroclear”) and Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) (the “International Global
Security”, and together with the DTC Global Securities, the “Global Securities” and each a “Global Security”). The DTC Global Securities will be substantially in the form attached as Exhibit A-1, and the International Global
Security will be substantially in the form attached as Exhibit A-2, in either case with such changes as may be agreed between Issuer and the Fiscal Agent, as defined in Section 2(a).
(d) So long as Cede & Co., as nominee of DTC, is the registered holder of the DTC Global Securities and subject to applicable law, DTC or its nominee, as the case may
be, will be considered the sole owner or holder of the Securities represented by the DTC Global Securities for all purposes under this Agreement and such Securities. Likewise, so long as The Bank of Tokyo-Mitsubishi, Ltd., London Branch, as common
depositary for Euroclear and Clearstream, Luxembourg, is the registered holder of the Securities represented by the International Global Security and subject to applicable law,
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the common depositary for Euroclear and Clearstream, Luxembourg, or its nominee, as the case may be, will be considered the sole owner or holder
of the Securities represented by the International Global Security for all purposes under this Agreement and such Securities. Except as set forth below, owners of beneficial interests in the Global Securities will not, except in the limited
circumstances described in Section 5, be entitled to have the Securities represented by the Global Securities registered in their names, will not receive or be entitled to receive Securities in definitive registered form and will not be considered
owners or holders thereof under this Agreement or such Securities. The Securities in definitive registered form, if any, will be substantially in the form attached as Exhibit A-1 or A-2 with the appropriate changes thereto, consistent with the
provisions of this Agreement, as may be agreed between Issuer and the Fiscal Agent. Neither Issuer nor the Fiscal Agent will have any responsibility or liability for any aspect of the records relating to or payments made by DTC, Euroclear or
Clearstream, Luxembourg (together, the “Clearing Systems”) on account of beneficial ownership interests in the Global Securities or for maintaining, supervising or reviewing any records of the Clearing Systems relating to such beneficial
ownership interests.
2. FISCAL AGENT; OTHER AGENTS. (i) Issuer and
Japan hereby appoint The Bank of Tokyo-Mitsubishi, Ltd., London Branch, also acting through its U.S. Representative, Bank of Tokyo-Mitsubishi Trust Company (the “U.S. Representative”), at present having its office in London, as fiscal
agent of Issuer and Japan in respect of the Securities upon the terms and subject to the conditions herein set forth, and The Bank of Tokyo-Mitsubishi, Ltd., London Branch, hereby accepts such appointment. The Bank of Tokyo-Mitsubishi, Ltd., London
Branch, also acting through Bank of Tokyo-Mitsubishi Trust Company in its capacity as U.S. Representative, and its successor or successors as such fiscal agent qualified or appointed in accordance with Section 8 hereof, are herein called the
“Fiscal Agent”. The Fiscal Agent shall have the powers and authority granted to and conferred upon it in the Securities and hereby and such further powers and authority to act on behalf of Issuer and Japan as Issuer and Japan may hereafter
grant to or confer upon it. All of the terms and provisions with respect to such powers and authority contained in the Securities are subject to and governed by the terms and provisions hereof. Issuer and Japan reserve the right to appoint, at their
discretion, agents (“Agents”) for the payment of principal of and interest on the Securities at such place or places as Issuer may determine. Issuer shall notify the Fiscal Agent of the appointment of any such Agent. For that purpose
Issuer and Japan hereby appoint The Bank of Tokyo-Mitsubishi, Ltd., London Branch, at 00-00 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX as principal paying agent and Bank of Tokyo-Mitsubishi (Luxembourg) S.A. at 000-000, Xxxxx x’Xxxxx, X-0000 Xxxxxxxxxx
as paying agent, and each of them hereby accepts such appointment.
(b) In compliance with Japanese tax laws and
the practices of tax authorities in Japan, Issuer hereby appoints the Fiscal Agent as its agent for (i) arranging the preparation and submission of all necessary forms and claims (including the interest receipt confirmations and the claims for
exemption to be submitted to the competent Japanese tax authority) in relation to Issuer’s Japanese withholding tax obligations and (ii) making the necessary payments to the Japanese tax authorities in accordance with
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operating procedures to be agreed between Issuer and the Fiscal Agent. The Fiscal Agent shall be responsible only for performing such
obligations as are expressly provided for in the operating procedures, which operating procedures shall stipulate obligations approved by the Japanese tax authorities, and no implied obligations on the part of the Fiscal Agent shall be read into
this Agreement or the operating procedures. The operating procedures may be amended from time to time to reflect any changes in Japanese tax laws and the practices of tax authorities in Japan.
3. EXECUTION, AUTHENTICATION, DELIVERY AND DATING. (a) The Securities will be executed on behalf of Issuer with the
facsimile signature of the Governor of Issuer or, if the Governor is unable to act, of a duly authorized agent of the Governor. The guarantee of Japan will bear the facsimile signature of the Minister of Finance of Japan or of another duly
authorized representative of Japan. Issuer and Japan may, respectively, adopt and use the facsimile signature of any person who shall have been such Governor or such agent of Issuer or such Minister of Finance or such representative of Japan,
notwithstanding the fact that when any Security shall be authenticated and delivered, he shall have ceased to be such Governor or such agent of Issuer or such Minister of Finance or such representative of Japan.
(b) The Fiscal Agent is authorized, upon receipt of Securities duly executed on behalf of Issuer and bearing the duly executed guarantee
of Japan as herein provided, together with a written order or orders to authenticate and deliver Securities in a stated aggregate principal amount, to authenticate such Securities, and to deliver said Securities to or upon the order of Issuer signed
by the Governor of Issuer or such person’s attorney-in-fact. Thereafter, the Fiscal Agent is authorized to authenticate and deliver Securities in accordance with the provisions therein or hereinafter set forth. The aggregate principal amount of
Securities to be issued and outstanding at any time, whether in the form of the Global Securities or Securities in definitive registered form issued in exchange for a Global Security in accordance with Section 5, shall not exceed
¥75,000,000,000, plus the aggregate principal amount of any additional Securities issued by Issuer in accordance with Section 10 of this Agreement.
(c) The Securities shall be dated the date of their authentication by the Fiscal Agent, except as otherwise provided in Sections 5(a) and 5(c) in connection with the Securities authenticated and
delivered upon transfer or exchange or in lieu of the Global Securities.
4. PAYMENT,
REDEMPTION AND CANCELLATION. (a) Subject to the following provisions, Issuer will pay to the Fiscal Agent the amounts at the times, and for the purposes, set forth herein and in the Securities. Issuer hereby authorizes and
directs the Fiscal Agent from funds so paid to it, to make or cause to be made payment of principal of and interest on the Securities as set forth herein and in accordance with the text of the Securities and the requirements of applicable law.
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(b) Subject to Sections 4(c), 4(d) and 4(m), the Fiscal Agent will arrange
directly or with any other Agent for the payment from funds furnished by Issuer of the principal of and interest on the Securities in immediately available funds by Japanese yen check drawn on, or by transfer to a Japanese yen account maintained by
the payee with, a bank located outside the United States or, additionally or alternatively, in such other manner as may be set forth or provided for in the text of the Securities. Notwithstanding the foregoing, Issuer may pay to an Agent
specifically designated for the purpose, funds for the payment of principal of and interest on the Securities under an agreement with respect to such funds containing substantially the same terms and conditions set forth in this Section 4(b) and in
Sections 4(d), 4(e), 4(f), 4(g), 4(h) and 7(b) of this Agreement; and the Fiscal Agent shall have no responsibility with respect to any funds so paid by Issuer to any such Agent.
(c) The Fiscal Agent shall, before 11.00 a.m. (London time) on the second Business Day prior to the date on which any payment becomes due on the Securities, ascertain the
aggregate amount of Japanese yen (the “Japanese Yen Amount”) payable to holders holding interests in Securities registered in the name of, or the name of a nominee for, DTC, in respect of which holders DTC has told the Fiscal Agent that
such holders have not made an irrevocable election to receive payment in Japanese yen in respect of such payment in accordance with the Operational Arrangements of DTC. The Fiscal Agent shall establish its bid quotation for the purchase of U.S.
dollars with Japanese yen, as near as practicable to 11.00 a.m. (London time), but not later than 3.00 p.m. (London time), on the second Business Day prior to the date on which the relevant payment becomes due. The settlement date for the exchange
of U.S. dollars with the Japanese Yen Amount shall be the relevant payment date. As early as practicable on each relevant payment date, the Fiscal Agent shall pay, or procure the payment of, the U.S. dollar amount receivable as a result of the
exchange of the Japanese Yen Amount into U.S. dollars by wire transfer of same day funds for value on the due date for payment to DTC for payment pro rata to the relevant accountholders in accordance with DTC’s settlement procedures. All costs
of any such conversion into U.S. dollars shall be borne pro rata by the relevant holders by deduction from the payment made to DTC and the relevant accountholder. If the applicable due date for payment is not a Business Day, delivery of the U.S.
dollars will occur on the next succeeding day which is a Business Day. If the Fiscal Agent is unable to establish its bid quotation for the purchase of U.S. dollars with Japanese Yen on the second Business Day prior to the date on which such payment
becomes due, the Fiscal Agent will obtain a bid quotation for that purpose from a leading foreign exchange bank in London selected by the Fiscal Agent in consultation with Issuer. If on such date the Fiscal Agent is unable to obtain a bid quotation
for that purpose from a leading foreign exchange bank, the Fiscal Agent will pay the Japanese Yen Amount to the account or accounts specified by DTC to the Fiscal Agent. Until such time as the Fiscal Agent is notified by DTC of the account or
accounts into which payment should be made, the funds held by the Fiscal Agent will, if the Fiscal Agent is able to reinvest such funds, having made reasonable efforts to do so, bear interest at the rate quoted by the Fiscal Agent for deposits in
the same currency as the funds with it on an overnight basis. In this Section 4(c), “Business Day” means a day, other than a Saturday or Sunday, on which commercial banks and foreign
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exchange markets are open for business or not authorized to close in The City of New York, London or Tokyo.
(d) In compliance with Japanese tax laws and the practices of tax authorities in Japan, in respect of any interest payment on the DTC
Global Securities hereunder, the Fiscal Agent shall act in accordance with the Compliance Procedures for International Securities Offerings by Japanese Issuers—Securities Held Through DTC (the “DTC Procedures”), and, in respect of any
interest payment on the International Global Security, the Fiscal Agent shall act in accordance with the IPMA Operating Manual on “Japanese Withholding Tax on Certain Eurobond Issues” (the “Manual”) dated 24th June, 1998. Except
as otherwise provided in this Agreement, the Fiscal Agent shall be responsible only for performing such services as are specifically provided for in the DTC Procedures, the Manual, or such other procedures actually known by the Fiscal Agent, as
applicable and as may be amended or modified and communicated to the Fiscal Agent from time to time.
(e) If and
so long as payments of interest may be made without deduction or withholding for or on account of Japanese tax only upon receipt of duly executed certifications, claims for exemption, notifications or other documentation (“Tax
Documentation”), the Fiscal Agent shall (i) collect the required Tax Documentation from holders and clearing organizations, (ii) review the Tax Documentation, and sign any required confirmations, and (iii) promptly deliver the Tax Documentation
(directly or through the relevant Agent, in the case of Tax Documentation collected by such Agent) to Issuer or, at Issuer’s request, the relevant Japanese District Tax Office. The Fiscal Agent may rely on the information provided in Tax
Documentation (including, where relevant, supporting documentation) in the absence of actual knowledge that such information is incorrect. The Fiscal Agent shall furnish forms of certifications to holders of the Securities upon request, and shall
use reasonable endeavors to assist holders in claiming available exemptions, but shall not be liable for a holder’s failure to qualify for such an exemption.
(f) If a holder of the Securities satisfies the requirements for claiming an exemption from Japanese withholding tax after the date on which an amount in respect of such
tax is withheld and before the date on which the tax is actually paid to the Japanese tax authorities, then Issuer and the Fiscal Agent shall, to the extent it is possible to do so, repay the amount withheld (after the deduction of reasonable costs,
including amounts in respect of changes in foreign exchange rates) to the holder.
(g) Under procedures agreed
with Issuer, the Fiscal Agent shall deliver tax certifications and related confirmations signed by or on behalf of Issuer, together with payment of any applicable withholding taxes, to the relevant Japanese District Tax Office on or before the date
on which such taxes are required under Japanese law or administrative practice to be paid.
(h) The Fiscal Agent
shall retain copies of Tax Documentation for a period of five years from the date as prescribed by law and shall make such documentation
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available for inspections by Issuer and any relevant tax authorities in Japan upon reasonable request.
(i) The Fiscal Agent shall open a Japanese yen account entitled “Development Bank of Japan Fiscal Agency Account” in which all
monies paid for the service of the Securities (other than as provided in Section 4(c)) shall be carried.
(j) The
Fiscal Agent shall not be under any liability for interest on any monies at any time received by it pursuant to any of the provisions of this Agreement or of the Securities except such as it pays on similar deposits or as may be agreed on by the
Fiscal Agent and Issuer and Japan.
(k) In case Issuer shall elect to redeem Securities, in whole but not in part,
the Fiscal Agent shall, upon Issuer’s request, cause to be published, on behalf of Issuer at Issuer’s cost, notice of intention to redeem the Securities on the date therein designated, and stating that on said redemption date there will
become and be due and payable upon each Security so to be redeemed the redemption price payable upon such redemption in lawful money of Japan, at the place or places specified in such notice, and that from and after such redemption date interest
thereon will cease to accrue. Such notice shall be published in a daily newspaper in the English language of general circulation in The City of New York and in a daily newspaper in the English language of general circulation in London, England, at
least once prior to the redemption date, such publication to be not less than thirty (30) days nor more than sixty (60) days prior to the redemption date, provided that for so long as the Securities are held in book-entry form such notices may be
given by delivery of the relevant notice to DTC, Euroclear, and Clearstream Luxembourg, for communication by them to their respective participants in substitution for publication in any such newspaper. In addition, for so long as the Securities are
listed on the Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so require, the Fiscal Agent shall, upon Issuer’s request, cause such notice to be published, on behalf of Issuer at Issuer’s cost, in a leading
newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort). In case, by reason of the temporary or permanent suspension of the publication or general circulation of any newspaper or by reason of any
other cause, it shall be impossible or impracticable to publish such notice in the manner herein provided, then such method of publication in lieu thereof as shall be approved by the Fiscal Agent shall constitute a sufficient publication of such
notice. Such notice shall also be sent by the Fiscal Agent by mail, postage prepaid, not less than thirty (30) days nor more than sixty (60) days prior to the redemption date to the registered holders of all the Securities, at the addresses of such
holders as they shall appear on the register maintained by the Fiscal Agent; but no failure to mail such notice to such registered holders nor any defect therein nor failure to receive the same shall affect the validity and effectiveness of the call
and redemption of any Securities so to be redeemed.
(l) All Securities surrendered for payment, redemption,
registration of transfer or exchange shall be promptly cancelled by the Fiscal Agent or such other person as may be designated by Issuer. All cancelled Securities which were surrendered to anyone
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other than the Fiscal Agent shall be delivered by such other person to the Fiscal Agent. All cancelled Securities held by the Fiscal Agent shall
be destroyed by the Fiscal Agent, and the Fiscal Agent shall furnish to Issuer and Japan a certificate with respect to such destruction. Issuer and Japan shall be entitled to have their representatives present at the time of any such destruction but
no notice of such destruction need be furnished prior thereto.
(m) In the event that Securities in definitive
registered form are issued, the Fiscal Agent shall make or cause to be made payment of principal of and interest on any such Securities directly to registered holders of such Securities in whose names such Securities were registered at the close of
business on the related record date for such payment. Payments will be made in immediately available funds by wire transfer or by check mailed to the addresses of such holders as they appear on the register maintained by the Fiscal Agent; provided,
however, that the final payment on any Security in definitive registered form will be made only upon surrender of such Security in definitive registered form at the office of the Fiscal Agent or any other duly appointed Agent on a payment date that
is a business day in the place of surrender. The Fiscal Agent shall provide notice of such final payment to registered holders mailed not later than the fifteen days before such final payment.
5. EXCHANGE AND REPLACEMENT OF SECURITIES. (a) The Fiscal Agent is hereby authorized from time to time in accordance with
the provisions of the Securities and of this Section to authenticate and deliver to the registered holder thereof:
(i) Global Securities or Securities in definitive registered form, as the case may be, in exchange for or in lieu of Global Securities or Securities in definitive registered form, as the case may be, which become mutilated,
destroyed, stolen or lost; and
(ii) Global Securities or Securities in definitive registered
form, as the case may be, of authorized denominations in exchange for a like aggregate principal amount of Global Securities or Securities in definitive registered form, as the case may be, of other authorized denominations.
All Securities so authenticated by the Fiscal Agent shall bear the guarantee of Japan in the form herein provided for.
Each Security authenticated and delivered upon any transfer or in exchange for or in lieu of the whole or any part of any
Security shall carry all rights to interest accrued and unpaid and to accrue which were carried by the whole or such part of such Security and shall be so dated that neither gain nor loss of interest shall result from such transfer, exchange or
substitution.
(b) Subject to subsection (c) of this Section, no service charge shall be made for any such
transfer, exchange or registration of Securities, but Issuer, Japan or the
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Fiscal Agent (and any other agent appointed by Issuer pursuant to Section 2 of this Agreement) may require payment of a sum sufficient to cover
any transfer, stamp or other tax or other governmental charge required to be paid in connection therewith.
(c) In
case any Security certificate shall at any time become mutilated or destroyed or stolen or lost then, provided that such Security, or evidence of the destruction, theft or loss thereof (together with the indemnity hereinafter referred to and such
other documents as may be required in the premises) shall be delivered to the Fiscal Agent or its U.S. Representative, a replacement Security of like tenor and principal amount and bearing the guarantee of Japan in the form herein provided for, will
be issued by Issuer and, at its request, authenticated and delivered by the Fiscal Agent, in exchange for the Security so mutilated, or in lieu of the Security destroyed or stolen or lost; and provided further that, in the case of destroyed, stolen
or lost Securities, Issuer, Japan and the Fiscal Agent shall have received evidence satisfactory to them that such Securities were destroyed, stolen or lost, and shall also have received an indemnity satisfactory to each of them. All expenses and
reasonable charges associated with procuring any indemnity and with the preparation, authentication and delivery of a replacement Security shall be borne by the holder of the Security mutilated, destroyed, stolen or lost. In case such mutilated,
destroyed, stolen or lost Security has become or is about to become due and payable, Issuer in its discretion may, instead of issuing a new Security, pay or cause to be paid such Security.
(d) Issuer will promptly make available to the Fiscal Agent a reasonable supply of Securities in definitive registered form and will issue or cause to be issued Securities
in definitive registered form upon registration of transfer of, or exchange for, Securities represented by the DTC Global Securities if (i) DTC (a) notifies Issuer that it is unwilling or unable to continue as depositary for such DTC Global Security
or (b) ceases to be a clearing agency registered under the United States Securities Exchange Act of 1934 at a time when it is required to be, and in either such case (a) or (b) a successor depositary is not appointed by Issuer within 90 days after
receiving such notice or becoming aware that DTC is no longer so registered.
(e) Issuer will promptly make
available to the Fiscal Agent a reasonable supply of Securities in definitive registered form and will issue or cause to be issued Securities in definitive registered form upon registration of transfer of, or exchange for, Securities represented by
the International Global Security if Euroclear or Clearstream, Luxembourg is closed for business for a continuous period of 14 days (other than by reason of legal holidays) or announces an intention permanently to cease business.
(f) Issuer may also at any time in its sole discretion determine not to have any of the Securities represented by the Global
Securities and, in such event, will issue or cause to be issued Securities in definitive registered form upon registration of transfer of, or in exchange for, Securities represented by Global Securities.
(g) Issuer shall bear the costs and expenses of printing or preparing any Securities in definitive registered form issued pursuant to
Section 5(d), 5(e) and 5(f) above.
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(h) Upon any such issuance pursuant to Section 5(d), 5(e) and 5(f) above of
Securities in definitive registered form in exchange for all the Securities represented by any Global Security, the Fiscal Agent shall receive the relevant Global Securities from the custodian for DTC or the common depositary for Euroclear and
Clearstream, Luxembourg, as the case may be, shall cancel such Global Securities and shall reduce the holdings of the registered holder of such Global Securities on the register to nil and shall receive Securities in definitive registered form from
Issuer. The Fiscal Agent shall have at least 30 days from the date of its receipt of Securities in definitive registered form and registration information to authenticate and deliver such Securities in definitive registered form in an aggregate
principal amount equal to and in exchange for the DTC, Euroclear or Clearstream, Luxembourg participants’ beneficial interests in the Securities represented by the relevant Global Securities as of the record date for such exchange, as directed
by DTC, Euroclear or Clearstream, Luxembourg, as the case may be. Such Securities in definitive registered form shall be registered in such names and in such denominations as DTC, Euroclear or Clearstream, Luxembourg, pursuant to instructions from
direct or indirect participants, shall direct and shall be delivered as directed by the persons in whose names such Securities in definitive registered form are to be registered. All Securities represented by Securities in definitive registered form
issued upon any such issuance in exchange for the Securities represented by the relevant Global Securities shall be valid obligations of Issuer, the holders of which shall be entitled to the same benefits under this Agreement as the holders of the
Global Securities and shall be so exchanged without charge to DTC, Euroclear, Clearstream, Luxembourg or the transferee.
(i) Unless the Global Securities are presented by an authorized representative of DTC, Euroclear or Clearstream, Luxembourg to Issuer, the Fiscal Agent or their respective agents for registration of transfer, exchange or payment, and
any replacement Global Securities are registered in the name of a nominee of DTC, Euroclear or Clearstream, Luxembourg and any payment is made to such nominee, any transfer, pledge or other use of the Global Securities for value or otherwise shall
be wrongful since the registered holders of the Global Securities have an interest in the Securities evidenced by the Global Securities.
(j) The Fiscal Agent shall not be required to exchange or register the transfer or exchange of any Security selected for redemption.
6. REGISTRATION OF TRANSFER. (a) The Fiscal Agent shall maintain, as agent of Issuer for the purpose, at its office in London, a register for (i)
registering and maintaining a record of the aggregate holdings of all DTC Global Securities and the International Global Security, (ii) registering transfers between holders of the Global Securities, and (iii) registering and maintaining a record of
any further issues of Securities pursuant to Section 10 of this Agreement and any subsequent transfers thereof. In addition the Fiscal Agent will (i) maintain and promptly update the respective Schedule to the DTC Global Securities and the
International Global Security, and (ii) ensure that the sum of the respective aggregate principal amounts shown by the latest entry in the respective Schedule to the DTC Global Securities and the International Global Security
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does not exceed ¥75,000,000,000, plus the aggregate principal amount of any additional Securities issued by Issuer in accordance with
Section 10 of this Agreement, at any one time. Upon presentation for the purpose at the said office of the Fiscal Agent of any Security duly endorsed by, or accompanied by delivery of a written instrument of transfer in form approved by the Fiscal
Agent duly executed by, the registered holder, in person or by attorney thereunto duly authorized in writing, such Security shall be transferred upon such register and a new Security, bearing the guarantee of Japan in the form herein provided for,
shall be authenticated and delivered in the name of the transferee. Transfers and exchanges of Securities shall be subject to such reasonable regulations as may be prescribed by Issuer.
(b) When book-entry interests in Securities are to be transferred from the account of a DTC participant holding a beneficial interest in a DTC Global Security to the
account of a Euroclear or Clearstream, Luxembourg accountholder wishing to purchase a beneficial interest in an International Global Security, on the settlement date, the custodian of the DTC, initially Bank of Tokyo-Mitsubishi Trust Company, will
instruct the Fiscal Agent to:
• |
decrease the amount of Securities registered in the name of the nominee of DTC and evidenced by the DTC Global Securities; and |
• |
increase the amount of Securities registered in the name of the nominee of the common depositary for Euroclear and Clearstream, Luxembourg, and evidenced by the
International Global Security. Book-entry interests will be delivered free of payment to Euroclear or Clearstream, Luxembourg as the case may be, for credit to the relevant accountholder on the first business day following the settlement date.
|
(c) When book-entry interests in the Securities are to be transferred from the account of a
Euroclear or Clearstream, Luxembourg accountholder to the account of a DTC participant wishing to purchase a beneficial interest in a DTC Global Security, on the settlement date, the common depositary for Euroclear and Clearstream, Luxembourg,
initially The Bank of Tokyo-Mitsubishi, Ltd., London Branch, will:
• |
transmit appropriate instructions to the custodian of the DTC Global Security, initially Bank of Tokyo-Mitsubishi Trust Company, who will in turn deliver such
book-entry interests in the Securities free of payment to the relevant account of the DTC participants; and |
• |
instruct the Fiscal Agent to: |
• |
decrease the amount of Securities registered in the name of the nominee of the common depositary for Euroclear and Clearstream, Luxembourg, and evidenced by the
International Global Security; and |
• |
increase the amount of Securities registered in the name of the nominee of the DTC and evidenced by the DTC Global Securities. |
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7. CONDITIONS OF FISCAL AGENT’S
OBLIGATIONS. The Fiscal Agent and each other Agent appointed under Section 2 herein accepts its obligations herein set forth, upon the terms and conditions hereof, including the following, to all of which the rights hereunder
of the holders from time to time of the Securities shall be subject:
(a) Compensation
and Indemnification. Issuer agrees promptly to pay the Fiscal Agent the compensation agreed upon with Issuer for all services rendered by the Fiscal Agent hereunder and to reimburse the Fiscal Agent for its reasonable
out-of-pocket expenses (including reasonable counsel fees) incurred, after prior general consultation with Issuer, in connection with the services rendered hereunder. Issuer also agrees to indemnify the Fiscal Agent (which term, for the avoidance of
doubt, includes the U.S. Representative) and each other Agent appointed under Section 2 hereof for, and to hold each of them harmless against, any loss, liability or expense incurred without negligence or bad faith, arising out of or in connection
with its acting as such Fiscal Agent or other Agent hereunder, as well as the reasonable costs and expenses of defending against any claim or liability in the premises.
(b) Agent for Issuer and Japan. In acting under this Agreement and in connection with the Securities, the Fiscal Agent
and each other Agent is acting solely as agent of Issuer and of Japan, and does not assume any obligation or relationship of agency or trust, for or with any of the owners or holders of the Securities, except that all funds held by the Fiscal Agent
or each other Agent for payment of principal of or interest on the Securities shall be held in trust, but need not be segregated from other funds except as required by law, and shall be applied as set forth herein and in the Securities; provided,
however, that monies held in respect of any Security remaining unclaimed at the end of two years after such principal or interest shall have become due and payable (whether upon any interest payment date, at maturity, upon call for redemption or
otherwise) shall be repaid to Issuer or Japan, whichever deposited such monies, as provided and in the manner set forth in the Securities, and, upon such repayment, the aforesaid trust shall terminate.
(c) Counsel. The Fiscal Agent and each other Agent may consult with counsel
satisfactory to it and to Issuer and to Japan, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or thing suffered by it hereunder in good faith and in accordance with the opinion
of such counsel.
(d) Documents. The Fiscal Agent and each
other Agent shall be protected and shall incur no liability for or in respect of any action taken or omitted or anything suffered by it in reliance without negligence or bad faith upon any Security, instruction, notice, direction, consent,
certificate, affidavit, statement, cablegram or other paper or document reasonably believed by it to be genuine and to have been delivered or signed by the proper parties.
(e) Certain Transactions. The Fiscal Agent and each other Agent, or any officer, director or employee thereof, may
become the owner of, or acquire any interest in, any Securities, with the same rights as if it were not the Fiscal Agent or each other Agent or
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such officer, director or employee, as the case may be, and may engage or be interested in any financial or other transaction with Issuer or
Japan, and may act for, or as depositary, trustee or agent for, any holders of the Securities or other obligations of Issuer or Japan, or any committee or body of such holders, as freely as if it were not the Fiscal Agent or such officer, director
or employee, as the case may be.
(f) Instructions. Instructions concerning the
operation of the provisions of this Agreement and the duties to be carried out by the Fiscal Agent or other Agent hereunder may from time to time be issued by Issuer and Japan, and the Fiscal Agent or other Agent shall at all times comply with all
such instructions as are for the time being in force.
(g) Reports and
Inspection. The Fiscal Agent shall furnish to Issuer and Japan such reports as may be required by the instructions of Issuer and Japan. Issuer and Japan each may, whenever it deems it necessary, inspect any Securities held
by the Fiscal Agent, any books of registration and transfer, and any other books and records maintained by the Fiscal Agent hereunder.
(h) Forwarding of Notices. If the Fiscal Agent shall receive any notice or demand addressed to Issuer or Japan by the holder of a Security pursuant to the provisions of the Securities, the
Fiscal Agent shall promptly forward copies of such notice or demand to both Issuer and Japan.
(i)
Statements. The recitals contained herein and in the Securities shall be taken as statements of Issuer or Japan, as the case may be, and the Fiscal Agent or other Agent assumes no responsibility for the correctness of
the same, except that the Fiscal Agent or other Agent shall be responsible for the correctness of its representations in the Certificate of Authentication on each Security.
8. RESIGNATION OR TERMINATION AND APPOINTMENT OF SUCCESSOR. (a) Issuer and Japan agree, for the benefit of the holders from
time to time of the Securities, that there shall at all times be a Fiscal Agent hereunder which shall be or be represented by a bank or trust company organized and doing business under the laws of the United States of America or the State of New
York, in good standing and having an established place of business in the Borough of Manhattan, The City of New York, and authorized under such laws to exercise corporate trust powers, until all the Securities authenticated and delivered hereunder
(i) shall have been delivered to the Fiscal Agent for cancellation or (ii) become due and payable and monies sufficient to pay the principal of and interest on the Securities shall have been made available for payment and either paid or returned to
Issuer or Japan as provided herein and in the Securities (such date being herein referred to as the “Agency Maintenance Termination Date”). And so long as the Securities are listed on the Luxembourg Stock Exchange and if the Luxembourg
Stock Exchange so requires, there shall be at all times be a paying agent in Luxembourg.
(b) Subject to the
provisions of this Section 8, Issuer and Japan may at any time and from time to time vary or terminate the appointment of the Fiscal Agent or any
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other agent appointed pursuant to Section 2 hereof or appoint any additional such agents for any or all of the purposes stated herein;
provided, however, that until the Termination Date, Issuer and Japan will at all times maintain an office or agency in the Borough of Manhattan, The City and State of New York, where Securities may be surrendered for payment and where
Securities may be surrendered for registration of transfer or exchange, as provided in the Securities, and where notices and demands to or upon Issuer and Japan in respect of Securities and this Agreement may be served and further provided, that
Issuer will maintain an Agent in an EU member state that will not be obliged to withhold or deduct tax pursuant to any EU Directive on the taxation of savings implementing the conclusions of the ECOFIN Council meeting of 26-27 November 2000. Issuer
and Japan will give prompt written notice to the Fiscal Agent of the appointment or termination of any such agent and of the location and any change in the location of any such office or agency and shall give notice thereof to holders of Securities
by prompt publication at least once in a daily newspaper in the English language of general circulation in The City of New York and in a daily newspaper in the English language of general circulation in London, England, provided that for so long as
the Securities are held in book-entry form such notices may be given by delivery of the relevant notice to DTC, Euroclear and Clearstream, Luxembourg, for communication by them to their respective participants in substitution for publication in any
such newspaper, and for so long as the Securities are listed on the Luxembourg Stock Exchange and the rules of the exchange so require, the Fiscal Agent shall, upon Issuer’s request, cause such notices to be published, on behalf of Issuer at
Issuer’s cost, in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort).
(c) Subject to the provisions of this subsection (c), (i) the Fiscal Agent may at any time resign as such agent by giving written notice, mailed to Issuer and to Japan in accordance with Section 15 hereof, of such intention
on its part, specifying the date on which its desired resignation shall become effective, provided that Issuer and Japan shall agree to such resignation, and (ii) the Fiscal Agent hereunder may be removed at any time by the filing with
it of an instrument in writing signed on behalf of Issuer and Japan and specifying such removal and the date when it shall become effective. Any resignation or removal of the Fiscal Agent shall take effect upon the appointment by Issuer and Japan,
by an instrument in writing, of a successor Fiscal Agent (which shall meet the qualifications prescribed in Section 8(a) hereof) and the acceptance of such appointment by such successor. Upon its resignation or removal, the Fiscal Agent shall be
entitled to the payment by Issuer of its compensation for the services theretofore rendered hereunder and to the reimbursement by Issuer of all reasonable out-of-pocket expenses theretofore incurred in connection with the performance of its duties
hereunder.
(d) In case at any time the Fiscal Agent shall resign, or shall be removed, or shall become incapable
of acting, or shall be adjudged a bankrupt or insolvent, or shall file a voluntary petition in bankruptcy or make an assignment for the benefit of its creditors or consent to the appointment of a receiver of all or any substantial part of its
property, or shall admit in writing its inability to pay or meet its debts as they mature, or if an order of any court shall be entered approving any petition filed by or against it under the provisions
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of Chapter 7 or 11 of Title 11 of the United States Code or under the provisions of any similar legislation, or if a receiver or custodian of it
or of all or any substantial part of its property shall be appointed or if any public officer shall have taken charge or control of the Fiscal Agent or of its property or affairs, for the purpose of rehabilitation, conservation or liquidation, a
successor Fiscal Agent, qualified as aforesaid, shall be appointed by Issuer and Japan, by an instrument in writing, filed with the successor Fiscal Agent. Upon the appointment as aforesaid of a successor Fiscal Agent and acceptance by the latter of
such appointment, the Fiscal Agent so superseded shall cease to be such Fiscal Agent hereunder.
(e) Any successor
Fiscal Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to Issuer and Japan an instrument accepting such appointment hereunder, and thereupon such successor Fiscal Agent, without any further act, deed or
conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such predecessor with like effect as if originally named as Fiscal Agent hereunder, and such predecessor, upon payment to it of its
charges and disbursements then unpaid, shall thereupon become obligated to transfer, deliver and pay over, and such successor Fiscal Agent shall be entitled to receive, all monies, securities or other property on deposit with or held by such
predecessor, as Fiscal Agent hereunder. Issuer and Japan shall give notice of the appointment of a successor Fiscal Agent to holders of Securities by prompt publication at least once in a daily newspaper in the English language of general
circulation in The City of New York and in a daily newspaper in the English language of general circulation in London, England, provided that for so long as the Securities are held in book-entry form such notices may be given by delivery of the
relevant notice to DTC, Euroclear and Clearstream, Luxembourg, for communication by them to their respective participants in substitution for publication in any such newspaper, and for so long as the Securities are listed on the Luxembourg Stock
Exchange and the rules of the exchange so require, the Fiscal Agent shall, upon Issuer’s request, cause such notices to be published, on behalf of Issuer at Issuer’s cost, in a leading newspaper having general circulation in Luxembourg
(which is expected to be the Luxemburger Wort).
(f) Any corporation or bank into which the Fiscal Agent or
its U.S. Representative hereunder may be merged or converted, or any corporation or bank with which the Fiscal Agent or its U.S. Representative may be consolidated, or any corporation or bank resulting from any merger, conversion or consolidation to
which the Fiscal Agent or its U.S. Representative shall be a party, or any corporation or bank to which the Fiscal Agent or its U.S. Representative shall sell or otherwise transfer all or substantially all of the assets and business of the Fiscal
Agent or its U.S. Representative, as the case may be, provided that it shall be qualified as aforesaid, shall be the successor Fiscal Agent or its U.S. Representative, as the case may be, under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto.
9. PAYMENT OF STAMP TAXES AND OTHER DUTIES. Issuer will pay all stamp taxes and other duties, if any, to which this Agreement or the original issuance of the Securities shall be subject.
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10. FURTHER ISSUES. Issuer may from
time to time, without notice to or the consent of the registered holders of the Securities, create and issue further securities ranking pari passu with the Securities in all respects (or in all respects except for the payment of interest accruing
prior to the issue date of such further securities or except for the first payment of interest following the issue date of such further securities) and so that such further securities shall be consolidated and form a single series with the
Securities and shall have the same terms as to status, redemption or otherwise as the Securities. Any further securities shall be issued with the benefit of an agreement supplemental to this Agreement.
11. INFORMATION AVAILABLE TO HOLDERS OF SECURITIES. The Fiscal Agent shall make available to
the holder of any Security upon request such information as may be contained in its records relating to the performance by Issuer and Japan of their obligations under the Securities and the guarantee thereof and hereunder.
12. AMENDMENT. This Agreement may be modified or amended by Issuer, Japan and the Fiscal
Agent, without the consent of the holder of any Security, for the purpose of adding to the covenants of Issuer or Japan for the benefit of such holders, surrendering any right or power conferred upon Issuer or Japan, securing the Securities pursuant
to the requirements of the Securities or otherwise, curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein, or in any manner which Issuer, Japan and the Fiscal Agent may mutually deem necessary or
desirable, which shall not be inconsistent with any Security and which shall not adversely affect in any material respect the interest of the holders of the Securities.
13. GOVERNING LAW. This Agreement shall be governed by, and interpreted in accordance with, the laws of the State of New York
except with respect to its authorization and execution by Issuer and Japan and any other matters required to be governed by the laws of Japan, which shall be governed by the laws of Japan.
14. APPOINTMENT OF AGENT FOR SERVICE. Issuer hereby appoints the U.S. Representative of the Fiscal Agent as its authorized
agent (the “Authorized Agent”) upon which process may be served in any action arising out of or based on this Agreement or the Securities which may be instituted in any State or Federal court in The City of New York by the Fiscal Agent or
the holder of any Security and Issuer expressly accepts the jurisdiction of any such court in respect of any such action. Such appointment, which the Fiscal Agent hereby confirms to have been accepted by such U.S. Representative, shall be
irrevocable until the Agency Maintenance Termination Date unless and until a successor Fiscal Agent has been appointed as Issuer’s Authorized Agent for such purpose and such successor Fiscal Agent shall have accepted such appointment. Issuer
will take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid. Service of process upon the Authorized Agent at the address
indicated in Section 15 hereof, or at such other address in the Borough of Manhattan, The City of New York, as may be the main office of such U.S. Representative at the time of such service, and written
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notice of such service to Issuer (mailed or delivered to Issuer at its address as provided in Section 15 hereof) shall be deemed in every
respect effective service of process upon Issuer. Notwithstanding the foregoing, any action arising out of or based on the Securities may also be instituted by the holder of a Security in any competent court in Japan. Issuer hereby waives
irrevocably any immunity to which it might otherwise be entitled in any action arising out of or based on this Agreement or the Securities which may be instituted as provided in this Section in any State or Federal court in The City of New York or
in any competent court in Japan. This waiver is intended to be effective upon execution of this Agreement without any further act by Issuer before any such court, and introduction of this Agreement into evidence shall be final and conclusive
evidence of such waiver.
15. NOTICES. Any notices pursuant to, or
communications with respect to, this Agreement shall be deemed to have been given when delivered in person, when deposited in the mail as first class registered or certified air mail, postage prepaid, or when sent by telecopy or telex or
communicated by telephone (subject, in the case of communication by telephone, to confirmation dispatched within twenty-four hours by telecopy or telex), in the case of Issuer, to the Development Bank of Japan, 9-1, Otemachi 1-chome, Xxxxxxx-xx,
Xxxxx 000-0000, Xxxxx, telecopy no.: 00-0000-0000, in the case of Japan, to 1-1, Xxxxxxxxxxxx 0-xxxxx, Xxxxxxx-xx, Xxxxx 000-0000, Xxxxx, telecopy no.: 00-0000-0000, Attention: Ministry of Finance, Financial Bureau, and, in the case of Fiscal Agent
to The Bank of Tokyo-Mitsubishi, London Branch, as Fiscal Agent, 00-00 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, telecopy no.: 00-00-0000-0000, telex no.: 884811, Attention: Securities Administration, with a copy (if appropriate) to Bank of
Tokyo-Mitsubishi Trust Company, 1251 Avenue of the Americas, Xxx Xxxx, Xxx Xxxx 00000, X.X.X., telecopy no.: 000-000-0000/5901, telex no.: 222967 BTM NYK, Attention: Corporate Trust Department; or such other address as shall be specified in writing
by the party in question to the other parties hereto.
16. SUCCESSORS AND
ASSIGNS. This Agreement and the Securities and the guarantee and all covenants and agreements by Issuer and Japan herein and in the Securities and in the guarantee shall be binding upon any successors or assigns to Issuer and
upon Japan, regardless of any such succession or assignment.
17. COUNTERPARTS. This Agreement may be executed in separate counterparts, and by each party separately on a separate counterpart, each such counterpart, when so executed and delivered,
to be an original. Such counterparts shall together constitute but one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have executed this Fiscal Agency Agreement as of the date first above written.
| By |
/s/ Xxxxxx Xxxxxxxxx | |||
| Name: Title: |
Xxxxxx Xxxxxxxxx Chief Representative, New York Representative Office | |||
| JAPAN | ||||
| By |
/s/ Xxxxxxx Xxxxx | |||
| Name: Title: |
Xxxxxxx Xxxxx Duly Authorized Representative of Japan | |||
| THE BANK OF TOKYO-MITSUBISHI, LTD., LONDON BRANCH | ||||
| By |
/s/ Xxxxxx Xxxxxx | |||
| Name: Title: |
Xxxxxx Xxxxxx Senior Vice President | |||
| BANK OF TOKYO-MITSUBISHI TRUST COMPANY | ||||
| By |
/s/ Xxxxxx Xxxxxx | |||
| Name: Title: |
Xxxxxx Xxxxxx Senior Vice President | |||
| BANK OF TOKYO-MITSUBISHI (LUXEMBOURG) S.A. | ||||
| By |
/s/ Xxxxxx Xxxxxx | |||
| Name: Title: |
Xxxxxx Xxxxxx Senior Vice President | |||
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EXHIBIT A-1
(FORM OF DTC GLOBAL SECURITY)
Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”), to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered holder hereof, Cede & Co. or such other entity, has an interest herein.
UNLESS AND UNTIL THIS GLOBAL SECURITY IS EXCHANGED FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
INTEREST PAYMENTS ON THIS SECURITY WILL BE SUBJECT TO JAPANESE WITHHOLDING TAX UNLESS THE HOLDER ESTABLISHES THAT THIS SECURITY IS HELD BY OR FOR THE ACCOUNT OF A HOLDER THAT IS NOT AN INDIVIDUAL
RESIDENT OF JAPAN OR A JAPANESE CORPORATION FOR JAPANESE TAX PURPOSES OR IS A DESIGNATED JAPANESE FINANCIAL INSTITUTION DESCRIBED IN ARTICLE 6 OF THE SPECIAL TAXATION MEASURES LAW OF JAPAN.
INTEREST PAYMENTS ON THIS SECURITY TO AN INDIVIDUAL RESIDENT OF JAPAN OR A JAPANESE CORPORATION NOT DESCRIBED IN THE PRECEDING PARAGRAPH WILL BE SUBJECT TO DEDUCTION IN RESPECT OF JAPANESE
INCOME TAX AT A RATE OF 15 PER CENTUM OF THE AMOUNT SPECIFIED IN SUBPARAGRAPHS (A) OR (B) BELOW, AS APPLICABLE:
(A) |
IF INTEREST IS PAID TO AN INDIVIDUAL RESIDENT OF JAPAN OR TO A JAPANESE CORPORATION (EXCEPT AS PROVIDED IN SUBPARAGRAPH (B) BELOW), THE AMOUNT OF SUCH INTEREST;
|
(B) |
IF INTEREST IS PAID TO A PUBLIC CORPORATION, A FINANCIAL INSTITUTION OR A SECURITIES COMPANY THROUGH A JAPANESE PAYMENT HANDLING AGENT, AS PROVIDED IN ARTICLE
0-0, XXXXXXXXX 6 OF THE SPECIAL TAXATION MEASURES LAW OF JAPAN, THE AMOUNT OF SUCH INTEREST MINUS THE AMOUNT PROVIDED IN THE CABINET ORDER RELATING TO SAID PARAGRAPH 6. |
| No. R
|
¥
|
- 1 -
1.70% Japanese Yen Guaranteed Bonds due September 20, 2022
1. The
DEVELOPMENT BANK OF JAPAN (herein called “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
Japanese yen on September 20, 2022, and to pay to the Registered Holder (as defined in paragraph 3) of this DTC Global
Security interest on said principal sum from December 13, 2002 or from the most recent interest payment date to which interest has been paid or duly provided for, semi-annually in arrears in equal installments, on September 20 and March 20 in each
year, commencing March 20, 2003, at the rate of one and seven tenths per centum (1.70%) per annum, until payment of said principal sum has been made or duly provided for, except that the first payment of interest to be made on March 20, 2003, shall
be in respect of the period from and including December 13, 2002 to, but excluding, March 20, 2003, and shall amount to ¥4,517 per ¥1,000,000 principal amount of the Securities (as defined in paragraph 3). The interest so payable on any
September 20 or March 20, together with any Additional Amounts (as defined in paragraph 2) payable as set out herein, will be paid to the person in whose name this DTC Global Security is registered at the close of business on the first day, in each
case, of the month in which such interest payment occurs, whether or not such day is a business day. Whenever it is necessary to compute any amount of accrued interest with respect to the Securities for a period of less than one full year, other
than with respect to regular semi-annual interest payments, interest will be computed on the basis of the actual number of days in the period and a year of 365 days.
Payments on this DTC Global Security will be made in accordance with any laws, regulations or administrative practices applicable to Issuer and the paying agent(s) in
respect thereof, including the requirements applicable under Japanese tax law. Except as described in paragraph 6 herein, payment of the principal of and interest on this DTC Global Security shall be made in lawful money of Japan in immediately
available funds at the main office of the U.S. Representative of the Fiscal Agent (as defined in paragraph 3) in the Borough of Manhattan, The City of New York, and, subject to applicable laws and regulations, at such other place or places as are
designated by Issuer, which shall include the office of the Fiscal Agent in London, in such coin or currency of Japan as at the time of payment is legal tender for the payment of public and private debts.
In any case where the due date for the payment of the principal of or interest on this DTC Global Security shall be a Saturday or Sunday
or day on which banking institutions are authorized or obligated by law to close in The City of New York, London or Tokyo, then payment of principal or interest need not be made on such date but may be made on the next succeeding day which is not a
day on which banking institutions are authorized or obligated by law to close in The City of New York, London or Tokyo with the same force and effect as if made on the date for such payment, and no interest shall accrue for the period after such
date.
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In the Fiscal Agency Agreement (as defined in paragraph 3), Issuer and Japan have agreed that until the date on which the
Securities (as defined in paragraph 3) shall have been delivered to the Fiscal Agent for cancellation, or become due and payable and monies sufficient to pay the principal of and interest on all of the Securities shall have been made available for
payment and either paid or returned to Issuer or Japan as provided herein (the “Agency Maintenance Termination Date”), Issuer and Japan will at all times maintain an office or agency in the Borough of Manhattan, The City of New York, where
Securities may be presented or surrendered for payment. And so long as the Securities are listed on the Luxembourg Stock Exchange and if the Luxembourg Stock Exchange so requires, there shall be at all times a paying agent in Luxembourg.
2. (a) All payments of principal and interest by Issuer in respect of this DTC Global Security will be made
without withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of Japan, or any authority therein or thereof having power to tax
(“Taxes”), unless the withholding or deduction of such Taxes is required by law. In that event, Issuer will pay such additional amounts (“Additional Amounts”) as may be necessary in order that the net amounts received by any
beneficial owner of this DTC Global Security after such withholding or deduction shall equal the respective amounts of principal and interest which would have been receivable in respect of this DTC Global Security in the absence of such withholding
or deduction, except that no such Additional Amounts shall be payable with respect to this DTC Global Security;
(i) to, or to a third party on behalf of, any beneficial owner of this DTC Global Security that is a non-resident of Japan or a non-Japanese corporation and is liable for such Taxes in respect of this DTC Global Security by reason of
such beneficial owner’s having some connection with Japan other than the mere holding of this DTC Global Security; or
(ii) to, or to a third party on behalf of, any beneficial owner of this DTC Global Security that would otherwise be exempt from any such withholding or deduction but that fails to comply with any applicable requirement to
provide the Exemption Information (as defined in paragraph 2(b)) to the Fiscal Agent (as defined in paragraph 3), or whose Exemption Information is not duly communicated through the Participant (as defined in paragraph 2(b)) and the relevant
international clearing organization to the Fiscal Agent; or
(iii) to, or to a third party on
behalf of, any beneficial owner of this DTC Global Security that is for Japanese tax purposes treated as a resident of Japan or a Japanese corporation (except for (A) a Designated Financial Institution (as defined in paragraph 2(b)) that complies
with the requirement to provide the Exemption Information or to submit a Claim for Exemption and (B) a resident of Japan or a Japanese corporation that duly notifies the Fiscal Agent of its status as exempt from Taxes to be withheld or deducted by
Issuer by reason of such resident or Japanese
- 3 -
corporation receiving interest on this DTC Global Security through a payment handling agent in Japan appointed by it);
(iv) more than 30 days after the Relevant Date (as defined in this paragraph 2(a)), except to the extent that any beneficial owner of this DTC Global
Security would have been entitled to such Additional Amounts for payment at the expiration of such 30-day period;
(v) where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to any European Union Directive on the taxation of savings implementing the conclusions of the ECOFIN Council
meeting of November 26-27, 2000 or any law implementing or complying with, or introduced in order to conform to, such Directive and withholding could not be avoided by establishing or making payments through a paying agent outside of the European
Union; or
(vi) to, or to a third party on behalf of, a beneficial owner of this DTC Global
Security who would have been able to avoid such withholding or deduction by presenting this DTC Global Security to another paying agent in a Member State of the European Union.
As used herein, the “Relevant Date” means the date on which such payment first becomes due, except that, if the amount of the moneys payable has not been received
by the Fiscal Agent on or prior to such due date, it means the date on which, the full amount of such moneys having been so received, notice to that effect shall have been duly published as set forth in paragraph 6.
(b) For the purpose of sub-paragraphs (ii) and (iii) above:
(i) where this DTC Global Security is held through a certain participant of an international clearing organization or a certain financial intermediary
(each, a “Participant”), in order to receive payments free of withholding or deduction by Issuer for, or on account of Taxes, if the relevant beneficial owner of this DTC Global Security is (A) a non-resident of Japan or a non-Japanese
corporation or (B) a Japanese financial institution falling under certain categories prescribed by the Special Taxation Measures Law (Law No. 26 of 1957, as amended), and the cabinet order (No. 43 of March 31, 1957, as amended) thereunder (together
with ministerial ordinances and other regulations thereunder, the “Law”) ( a “Designated Financial Institution”), all in accordance with the Law, such beneficial owner shall, at the time of entrusting a Participant with the
custody of this DTC Global Security, provide certain information prescribed by the Law to enable the Participant to establish that such beneficial owner is exempted from the requirement for Taxes to be withheld or deducted (the “Exemption
Information”) and advise the Participant if such beneficial owner ceases to be so exempted; and
- 4 -
(ii) where this DTC Global Security is not held by a Participant,
in order to receive payments free of withholding or deduction by Issuer for, or on account of, Taxes, if the relevant beneficial owner of this DTC Global Security is (A) a non-resident of Japan or a non-Japanese corporation or (B) a Designated
Financial Institution, all in accordance with the Law, such beneficial owner shall on or prior to each time on which it receives interest, submit to the Fiscal Agent a claim for exemption from withholding tax (Hikazei Tekiyo Shinkokusho) (a
“Claim for Exemption”) in the form obtainable from the Fiscal Agent stating, among other things, the name and address of such beneficial owner, the title of this DTC Global Security, the relevant interest payment date, the amount of
interest and the fact that such beneficial owner is qualified to submit the Claim for Exemption, together with the documentary evidence showing that such beneficial owner is a non-resident of Japan or a non-Japanese corporation or a Designated
Financial Institution.
Any reference in this DTC Global Security or the guarantee of Japan in the form provided
in the Fiscal Agency Agreement to principal or interest shall be deemed also to refer to any Additional Amount which may be payable under this paragraph 2.
3. This DTC Global Security is one of a duly authorized issue of ¥75,000,000,000 (seventy-five billion Japanese yen) aggregate principal amount of 1.70% Japanese Yen
Guaranteed Bonds due September 20, 2022 (herein called the “Securities”). The Securities are issuable only as fully registered Securities without coupons in denominations of ¥1,000,000 and any integral multiple thereof. For the benefit
of the Registered Holders (as defined in this paragraph 3) from time to time of the Securities, Issuer has entered into a Fiscal Agency Agreement (the “Fiscal Agency Agreement”), dated as of December 6, 2002, with Japan, The Bank of
Tokyo-Mitsubishi, Ltd., London Branch, as Fiscal Agent and Principal Paying Agent, Bank of Tokyo-Mitsubishi Trust Company, as U.S. representative of the Fiscal Agent (the “U.S. Representative”), and Bank of Tokyo-Mitsubishi (Luxembourg)
S.A., as Paying Agent, with respect to the Securities, copies of which Fiscal Agency Agreement are on file and available for inspection at the office of the U.S. Representative of the Fiscal Agent at 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx
00000. The Bank of Tokyo-Mitsubishi, Ltd., London Branch, also acting through Bank of Tokyo-Mitsubishi Trust Company in its capacity as U.S. Representative, and its successors as Fiscal Agent are herein called the “Fiscal Agent”. In acting
under the Fiscal Agency Agreement, the Fiscal Agent is acting solely as agent for Issuer and Japan and does not assume any obligation or relationship of agency or trust for or with the Registered Holder of this DTC Global Security except as
specifically described below. As used herein, the term “Registered Holder” of Security means the person in whose name such Security is registered in the Security Register (as defined in paragraph 10).
Notwithstanding any other provision of the Fiscal Agency Agreement or this DTC Global Security, a DTC Global Security may be transferred
to, or exchanged for Securities in definitive registered form registered in the name of, a person other than DTC, a nominee of DTC or a successor of DTC or its nominee if (i) DTC (a) notifies Issuer that it is unwilling or unable to continue as
depositary for such DTC Global Security or (b) ceases
- 5 -
to be a clearing agency registered under the United States Securities Exchange Act of 1934 at a time when it is required to be, and in either
such case (a) or (b) a successor is not appointed by Issuer within 90 days after receiving such notice or becoming aware that DTC is no longer so registered or (ii) Issuer in its sole discretion, instructs the Fiscal Agent in writing that a Global
Security shall be so transferable and exchangeable. Securities in definitive registered form issued in exchange for this DTC Global Security will be registered in such names as an authorized representative of DTC, pursuant to instructions from
direct or indirect Participants in DTC shall request, and issued in denominations of ¥1,000,000 and integral multiples thereof.
4. This DTC Global Security is subject to retirement or redemption as hereinafter provided. Redemption of this DTC Global Security pursuant to this paragraph 4 shall be made upon the notice, in the
manner and with the effect hereinafter set forth.
5. In order to provide for the payment
of principal of and interest on the Securities as the same shall become due, Issuer does hereby agree to pay to the Fiscal Agent at its principal office in London, in lawful money of Japan, the amounts set forth below in this paragraph, to be held
in trust and applied by the Fiscal Agent as hereinafter set forth:
(a) Issuer shall pay to the Fiscal Agent
semi-annually on a date not later than each semi-annual interest payment date (or such other date when interest is payable, as provided in paragraph 9(b)) an amount sufficient to pay the interest becoming due on all Securities on such interest
payment date, and the Fiscal Agent shall apply the amounts so paid to it to the payment of such interest on such interest payment date.
(b) On a date not later than the redemption or maturity date (or such other date when principal is payable as provided in paragraph 9(b)) of the Securities, Issuer shall pay to the Fiscal Agent an amount which, together with
any monies then held by the Fiscal Agent and available for the purpose, shall be equal to the entire amount of principal and interest to be due on such redemption or maturity date on the Securities called for redemption or then outstanding, and the
Fiscal Agent shall apply such amount to the payment of principal of and interest on such Securities in accordance with the terms thereof.
(c) Any monies paid to the Fiscal Agent for the payment of principal of or interest on any Securities and remaining unclaimed at the end of two years after such principal or interest shall have become due and payable
(whether at maturity, upon any interest payment date, upon call for redemption or otherwise) shall be repaid to Issuer or Japan, whichever deposited such monies, and upon such repayment the aforesaid trust shall terminate with respect to such monies
and all liability of the Fiscal Agent with respect to such monies shall thereupon cease, without, however, limiting in any way the unconditional obligation of Issuer (subject, however, to any applicable statute of limitations or prescription) to pay
principal of and interest on this DTC Global Security.
- 6 -
6. (a) Principal of, and interest, if any, on the
Securities are payable in the lawful money of Japan (“Japanese yen” or “¥”) to the person registered on the relevant record date in the Security Register (as defined in paragraph 10) held by the Fiscal Agent. Notwithstanding
the foregoing, payments of principal of, and interest, if any, on, Securities represented by this DTC Global Security made in Japanese yen will be converted into the lawful currency of the United States (“U.S. dollars” or “U.S.
$”), provided that the beneficial owners of Securities represented by this DTC Global Security may elect to receive all such payments in Japanese yen by delivery of a written request to the Fiscal Agent through the holder of the DTC Global
Security on or prior to the applicable Record Date or at least fifteen calendar days prior to maturity, as the case may be. Such election shall remain in effect unless and until changed by written notice to the Fiscal Agent, but the Fiscal Agent
must receive written notice of any such change on or prior to the applicable Record Date or at least fifteen calendar days prior to maturity, as the case may be. Issuer will appoint an agent (initially, The Bank of Tokyo-Mitsubishi, London Branch)
(the “Exchange Agent”) to determine the exchange rate for converting the payments into U.S. dollars in the manner described in the following paragraph.
(b) To the extent the holder of this DTC Global Security has elected otherwise pursuant to the immediately preceding paragraph, payment in respect of Securities represented by this DTC Global Security
shall be made in U.S. dollars based upon the exchange rate as determined by the Exchange Agent based on a firm bid quotation for U.S. dollars received by such Exchange Agent at approximately 11:00 A.M., London time, on the second Business Day
preceding the applicable payment date (or, if no such rate is quoted on such date, the last date on which such rate was quoted), from a recognized foreign exchange dealer in London selected by the Exchange Agent and approved by Issuer (which foreign
exchange dealer may be the Exchange Agent) for the purchase by the quoting dealer, for settlement on such payment date, of the aggregate amount of Japanese yen payable on such payment date in respect of all Securities represented by this DTC Global
Security as to which no election to receive payments in Japanese yen has been made and at which the applicable dealer commits to execute a contract (the “Exchange Rate”). All currency exchange costs will be borne by the holders of such
Securities by deductions from such payments. If no bid quotation is available, payments will be made in Japanese yen. The amount so payable on any date in Japanese yen shall be converted into U.S. dollars at a rate determined by the Exchange Agent
on the basis of the most recently available Exchange Rate.
(c) Payments in respect of Securities represented by
this DTC Global Security will be made to beneficial owners in accordance with customary procedures established from time to time by DTC. In the case of beneficial owners who have elected through the holder of this DTC Global Security to receive
payments in respect of such Securities in Japanese yen, payments of the principal of and interest on the Securities will be made in immediately available funds by Japanese yen check drawn on, or by transfer to a Japanese yen account maintained by
the payee with a bank located outside the United States.
- 7 -
7. If any date for payment to the registered holder hereof is not a Business Day in the applicable
place of payment, such registered holder shall not be entitled to payment until the next following Business Day, and no further interest shall be paid in respect of the delay in such payment. In this paragraph “Business Day” means a day on
which banking institutions in The City of New York, London, Tokyo and in any other applicable place of payment are not authorized or obligated by law or executive order to be closed.
8. The Securities (including this DTC Global Security) may be redeemed for cash at the option of Issuer in whole, but not in part, on not more than
sixty (60) days’ and not less than thirty (30) days’ irrevocable notice to the Registered Holders of the Securities, at a redemption price for each DTC Global Security equal to the principal amount thereof, together with accrued interest
to the date fixed by Issuer for redemption and any Additional Amounts, if Issuer determines and certifies to the Fiscal Agent immediately prior to the giving of the notice that, as a result of any change in, or amendment to, the laws or treaties (or
any regulations or rulings promulgated thereunder) of Japan (or any political subdivision or taxing authority of Japan) affecting any Taxes, or any change in official position regarding the application or interpretation of these laws, treaties
regulations or rulings (including a holding, judgment or order by a court of competent jurisdiction), which change, amendment, application or interpretation becomes effective on or after the date of the applicable prospectus, Issuer is, or on the
next interest payment date would be, required to pay any Additional Amounts for the Securities that cannot be avoided by measures reasonably available to Issuer; provided that no notice of redemption shall be given earlier than ninety (90) days
prior to the earliest date on which Issuer would be obligated to make the withholding if a payment in respect of the Securities were then due. Prior to the publication and mailing of any notice of redemption of the Securities pursuant to the
foregoing, Issuer will deliver to the Fiscal Agent an opinion of independent counsel of recognized standing or an opinion of a tax consultant of recognized standing to the effect that the circumstances referred to above exist. The Fiscal Agent shall
accept such opinion of counsel or tax opinion, as the case may be, as sufficient evidence of the satisfaction of the conditions precedent described above, in which event it shall be conclusive and binding on the Registered Holders of the Securities.
Notice of intention to redeem the Securities, specifying the redemption date and the place or places where the
redemption price will be paid, shall be given by publication at least once in a daily newspaper in the English language, of general circulation in The City of New York and in a daily newspaper in the English language of general circulation in
London, England, such publication to be not less than thirty (30) days nor more than sixty (60) days prior to the redemption date, provided that for so long as the Securities are held in book-entry form such notice may be given by delivery of the
relevant notice to DTC, Euroclear and Clearstream, Luxembourg, for communication by them to their respective participants in substitution for publication in any such newspaper, and provided further that for so long as the Securities are listed on
the Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so require, the Fiscal Agent shall, upon Issuer’s request, cause such notice to be published, on behalf of Issuer at Issuer’s cost, in a leading
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newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort). In case, by reason of the temporary or
permanent suspension of the publication or general circulation of any newspaper or by reason of any other cause, it shall be impossible or impracticable to publish such notice in the manner herein provided, then such method of publication in lieu
thereof as shall be approved by the Fiscal Agent shall constitute a sufficient publication of such notice. Such notice shall also be sent by the Fiscal Agent by mail, postage prepaid, not less than thirty (30) days nor more than sixty (60) days
prior to the redemption date to the Registered Holders of all the Securities, at the addresses of such Registered Holders as they shall appear in the Security Register (as defined in paragraph 10); but no failure to mail such notice to such
Registered Holders nor any defect therein nor failure to receive the same shall affect the validity and effectiveness of the call and redemption of any Securities so to be redeemed. Notice having been so given, the Securities so called for
redemption shall become due and payable on the redemption date so designated at the redemption price, and upon surrender thereof, the Securities will be paid at the redemption price together with all accrued interest (unless the redemption date is a
date for the payment of interest) in lawful money of Japan, at the place or places specified in such notice. From and after the redemption date, if monies for the redemption of all the Securities to be redeemed, shall have been available at the
office of the Fiscal Agent for redemption on the redemption date, the Securities so called for redemption shall cease to bear interest and the only right of the Registered Holders of the Securities shall be to receive payment of the redemption price
in accordance with the terms of such Securities.
9. This DTC Global Security will become
void unless presented for payment within a period of five years from the Relevant Date (as defined in paragraph 2).
10. (a) In the event of a default by Issuer (i) in the payment when due of principal of or interest on any of the Securities and the continuance of such default for a period of 30 days, or (ii) in the
performance of any other covenant contained in the Securities and the continuance of such default for a period of 90 days after written notice thereof to Issuer from the Registered Holder of any DTC Global Security shall have been received by the
Fiscal Agent, then in any such case the principal amount of this DTC Global Security shall, at the option of and upon written demand to the Fiscal Agent at said office by the Registered Holder hereof, mature and become due and payable upon the date
that such written demand is received by the Fiscal Agent, unless prior to such date Issuer shall have cured all such defaults in respect of all the Securities. Any amount of interest or principal so in default in respect of this DTC Global Security
shall bear interest (if, and to the extent permitted by law) at the rate specified in the title of this DTC Global Security until such default shall have been cured.
(b) In any case where the date for the payment of the principal of or interest on any DTC Global Security shall be a day on which banking institutions are authorized or
obligated by law to close in The City of New York, London, Tokyo or in any other applicable place of payment, then payment of principal or interest need not be made on such date at such place but may be made on the next succeeding day at such place
of
- 9 -
payment which is not a day on which banking institutions are authorized or obligated by law to close, with the same force and effect as if made
on the date for the payment of the principal of or interest on such DTC Global Security, and no interest shall accrue for the period after such date to such next succeeding date.
11. The transfer of this DTC Global Security is registrable on the DTC Global Security Register (as herein defined) upon surrender of this DTC Global
Security for registration at the main office of the U.S. Representative of the Fiscal Agent duly endorsed by, or accompanied by a written instrument of transfer in a form approved by the Fiscal Agent duly executed by, the Registered Holder hereof or
such Registered Holder’s attorney duly authorized in writing. Upon surrender of this DTC Global Security by an authorized representative of the DTC, for registration of transfer, Issuer shall execute, and the Fiscal Agent shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Securities, of any authorized denominations and of a like aggregate principal amount, and registered in such name or names as may be requested by an authorized
representative of the DTC, dated the date of authentication thereof and bearing the guarantee of Japan in the form provided in the Fiscal Agency Agreement. Issuer, Japan and the Fiscal Agent may deem and treat the registered owner hereof as the
absolute owner hereof (notwithstanding any notice of ownership or writing hereon made by anyone) for the purpose of receiving payment hereof and for all other purposes, whether or not this DTC Global Security shall be overdue. Issuer covenants that,
until the Agency Maintenance Termination Date, it will at all times maintain in the Borough of Manhattan, The City of New York, an office or agency for the transfer and registration of transfers, as aforesaid, of Securities and where notices and
demands to or upon Issuer or Japan in respect of the Securities and the Fiscal Agency Agreement may be served. Issuer has appointed the Fiscal Agent (acting through its U.S. Representative) as its agent for such purpose and has agreed to cause to be
kept at the office of the Fiscal Agent in London a register (the register maintained in such office being herein sometimes referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, Issuer
shall provide for such registration and registration of transfers.
In the manner and subject to the limitations
provided in the Fiscal Agency Agreement, Securities may be exchanged for a like aggregate principal amount of Securities of authorized denominations bearing the guarantee of Japan in the form provided in the Fiscal Agency Agreement. Issuer covenants
that until the Agency Maintenance Termination Date, it will at all times maintain an office or agency in the Borough of Manhattan, The City of New York, where Securities may be surrendered in exchange for Securities in other authorized denominations
in accordance with the terms hereof and of the Fiscal Agency Agreement. Issuer has appointed the Fiscal Agent (acting through its U.S. Representative) as its agent for such purpose.
The Fiscal Agent shall not be required to exchange or to register the transfer of any Security selected for redemption.
- 10 -
All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of
Issuer guaranteed by Japan evidencing the same debt, and entitled to the same benefits, as the Securities surrendered upon such registration of transfer or exchange. Any new DTC Global Security delivered pursuant to this paragraph 10 shall be so
dated that neither gain nor loss of interest shall result from such registration or exchange.
No service charge
shall be made for any such exchange or registration of transfer, but Issuer, Japan or the Fiscal Agent may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.
12. In case any DTC Global Security shall at any time become mutilated or destroyed or stolen or lost then,
provided that such DTC Global Security, or evidence of the destruction, theft or loss thereof (together with the indemnity hereinafter referred to and such other documents or proof as may be required in the premises) shall be delivered to the Fiscal
Agent or its U.S. Representative, a replacement DTC Global Security of like tenor and principal amount and bearing the guarantee of Japan in the form provided in the Fiscal Agency Agreement will be issued by Issuer and, at its request, authenticated
and delivered by the Fiscal Agent, in exchange for the DTC Global Security so mutilated, or in lieu of the DTC Global Security destroyed or stolen or lost; and provided further that, in the case of destroyed, stolen or lost Securities, Issuer, Japan
and the Fiscal Agent shall have received evidence satisfactory to them that such Securities were destroyed, stolen or lost, and shall also have received an indemnity satisfactory to each of them. All expenses and reasonable charges associated with
procuring such indemnity and with the preparation, authentication and delivery of a replacement DTC Global Security shall be borne by the Registered Holder of the DTC Global Security mutilated, destroyed, stolen or lost. In case such mutilated,
destroyed, stolen or lost DTC Global Security has become or is about to become due and payable, Issuer in its discretion may, instead of issuing a new DTC Global Security, pay or cause to be paid such DTC Global Security.
Every replacement DTC Global Security issued pursuant to this paragraph 11 in exchange for or in lieu of any mutilated, destroyed, stolen
or lost DTC Global Security shall constitute an original additional contractual obligation of Issuer guaranteed by Japan, whether or not the mutilated, destroyed, stolen or lost DTC Global Security shall be at any time enforceable by anyone. Any
replacement DTC Global Security delivered pursuant to this paragraph 11 shall be so dated that neither gain nor loss of interest shall result from such replacement.
Upon the issuance of any replacement DTC Global Security under this paragraph 10, Issuer, Japan or the Fiscal Agent may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Fiscal Agent) connected therewith.
- 11 -
The provisions of this paragraph 11 are exclusive and shall preclude (to the extent lawful) all other rights and remedies
with respect to the replacement or payment of mutilated, destroyed, stolen or lost Securities.
13. Subject to paragraph 14, Issuer hereby certifies and declares that all acts, conditions and things required to be done and performed and to have happened precedent to the creation and issuance of this DTC
Global Security and its guarantee by Japan, and to constitute the same the valid obligations of Issuer and of Japan, respectively, in accordance with their terms, have been done and performed and have happened in due and strict compliance with the
applicable laws of Japan.
14. The Fiscal Agency Agreement may be modified or amended by
Issuer, Japan and the Fiscal Agent, and the terms and conditions of the Securities may be modified or amended by Issuer and Japan, without the consent of the Registered Holder of any DTC Global Security for the purpose of adding to the covenants of
Issuer or Japan for the benefit of the Registered Holders, surrendering any right or power conferred upon Issuer or Japan, securing the Securities pursuant to the requirements of the Securities or otherwise, curing any ambiguity, or curing,
correcting or supplementing any defective provision therein, or in any manner which Issuer, Japan and the Fiscal Agent may mutually deem necessary or desirable, which, in the case of the Fiscal Agency Agreement, shall not be inconsistent with the
Securities, and which shall not adversely affect the interests of the Registered Holders of the Securities in any material respect, to all of which each Registered Holder of any DTC Global Security shall, by acceptance thereof, consent.
15. This DTC Global Security shall not become valid or obligatory for any purpose unless
and until this DTC Global Security has been authenticated by The Bank of Tokyo-Mitsubishi, Ltd., London Branch, or its successor, as Fiscal Agent.
16. This DTC Global Security shall be governed by, and interpreted in accordance with, the laws of the State of New York except with respect to its authorization and execution by
Issuer and any other matters required to be governed by the laws of Japan.
17. As more
fully set forth in the Fiscal Agency Agreement, Issuer has appointed the U.S. Representative of the Fiscal Agent as its authorized agent upon which process may be served in any action arising out of or based on the Securities or the Fiscal Agency
Agreement which may be instituted in any State or Federal court in The City of New York by the Registered Holder of this DTC Global Security, and Issuer hereby expressly accepts the jurisdiction of any such court in respect of such action. Such
appointment shall be irrevocable until the Agency Maintenance Termination Date, unless and until a successor Fiscal Agent shall have been appointed by Issuer as its authorized agent for such purpose and such successor Fiscal Agent shall have
accepted such appointment. Notwithstanding the foregoing, any action arising out of or based on the Securities may be instituted by the Registered Holder of this DTC Global Security in any competent court in Japan. Issuer hereby waives irrevocably
any immunity to which it
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might otherwise be entitled in any action based on the Securities which may be instituted by the Registered Holder of any DTC Global Security in
any State or Federal court in The City of New York or in any competent court in Japan. This waiver is intended to be effective upon execution of this DTC Global Security without any further act by Issuer before any such court, and introduction of
this DTC Global Security into evidence shall be final and conclusive evidence of such waiver.
IN WITNESS WHEREOF,
Issuer has caused this DTC Global Security to be executed with the facsimile signature of the Governor or a duly authorized agent of the Governor of Issuer in New York, New York, United States of America.
Dated:
| By |
| |
| Name: [Governor or Duly Authorized Agent] | ||
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[Form of Certificate of Authentication]
This is one of the Securities within referred to. The undersigned hereby represents that it has not authenticated Securities in excess of
an aggregate principal amount of ¥75,000,000,000 (other than Securities issued in exchange for and upon the cancellation of a like aggregate principal amount of other Securities, and Securities issued in lieu of destroyed, stolen or lost
Securities).
| THE BANK OF TOKYO-MITSUBISHI, LTD., LONDON BRANCH as Fiscal Agent | ||
| By |
||
| | ||
| Authorized Signatory | ||
SCHEDULE TO THE DTC GLOBAL SECURITY
1.70% JAPANESE YEN
GUARANTEED BONDS DUE SEPTEMBER 20, 2022
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- 1 -
EXHIBIT A-2
(FORM OF INTERNATIONAL GLOBAL SECURITY)
UNLESS AND UNTIL THIS
GLOBAL SECURITY IS EXCHANGED FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
INTEREST PAYMENTS ON THIS SECURITY WILL BE SUBJECT TO JAPANESE WITHHOLDING TAX UNLESS THE HOLDER ESTABLISHES THAT THIS SECURITY IS HELD BY OR FOR THE ACCOUNT OF A HOLDER THAT IS NOT AN INDIVIDUAL RESIDENT OF JAPAN OR A JAPANESE
CORPORATION FOR JAPANESE TAX PURPOSES OR IS A DESIGNATED JAPANESE FINANCIAL INSTITUTION DESCRIBED IN ARTICLE 6 OF THE SPECIAL TAXATION MEASURES LAW OF JAPAN.
INTEREST PAYMENTS ON THIS SECURITY TO AN INDIVIDUAL RESIDENT OF JAPAN OR A JAPANESE CORPORATION NOT DESCRIBED IN THE PRECEDING PARAGRAPH WILL BE SUBJECT TO DEDUCTION IN RESPECT OF JAPANESE INCOME TAX AT A RATE OF 15 PER
CENTUM OF THE AMOUNT SPECIFIED IN SUBPARAGRAPHS (A) OR (B) BELOW, AS APPLICABLE:
(A) |
IF INTEREST IS PAID TO AN INDIVIDUAL RESIDENT OF JAPAN OR TO A JAPANESE CORPORATION (EXCEPT AS PROVIDED IN SUBPARAGRAPH (B) BELOW), THE AMOUNT OF SUCH INTEREST;
|
(B) |
IF INTEREST IS PAID TO A PUBLIC CORPORATION, A FINANCIAL INSTITUTION OR A SECURITIES COMPANY THROUGH A JAPANESE PAYMENT HANDLING AGENT, AS PROVIDED IN ARTICLE
0-0, XXXXXXXXX 6 OF THE SPECIAL TAXATION MEASURES LAW OF JAPAN, THE AMOUNT OF SUCH INTEREST MINUS THE AMOUNT PROVIDED IN THE CABINET ORDER RELATING TO SAID PARAGRAPH 6. |
| No.
R |
¥ |
|
- 1 -
1.70% Japanese Yen Guaranteed Bonds due September 20, 2022
1. The
DEVELOPMENT BANK OF JAPAN (herein called “Issuer”), for value received, hereby promises to pay to TOKYOTRUST NOMINEES LIMITED, or registered assigns, the principal sum of
Japanese yen on September 22, 2022, and to pay to the Registered Holder (as defined in paragraph 3) of this International Global Security interest on said principal sum
from December 13, 2002 or from the most recent interest payment date to which interest has been paid or duly provided for, semi-annually in arrears in equal installments, on September 20 and March 20 in each year, commencing March 20, 2003, at the
rate of one and seven tenths per centum (1.70%) per annum, until payment of said principal sum has been made or duly provided for, except that the first payment of interest to be made on March 20, 2003, shall be in respect of the period from and
including December 13, 2002 to, but excluding, March 20, 2003, and shall amount to ¥4,517 per ¥1,000,000 principal amount of the Securities (as defined in paragraph 3). The interest so payable on any September 20 or March 20, together with
any Additional Amounts (as defined in paragraph 2) payable as set out herein, will be paid to the person in whose name this International Global Security is registered at the close of business on the first day, in each case, of the month in which
such interest payment occurs, whether or not such day is a business day. Whenever it is necessary to compute any amount of accrued interest with respect to the Securities for a period of less than one full year, other than with respect to regular
semi-annual interest payments, interest will be computed on the basis of the actual number of days in the period and a year of 365 days.
Payments on this International Global Security will be made in accordance with any laws, regulations or administrative practices applicable to Issuer and the paying agent(s) in respect thereof, including the requirements
applicable under Japanese tax law. Payment of the principal of and interest on this International Global Security shall be made in lawful money of Japan in immediately available funds at the office of the Fiscal Agent (as defined in paragraph 3) in
London and, subject to applicable laws and regulations, at such other place or places as are designated by Issuer, in such coin or currency of Japan as at the time of payment is legal tender for the payment of public and private debts.
In any case where the due date for the payment of the principal of or interest on International Global Security shall be a
Saturday or Sunday or day on which banking institutions are authorized or obligated by law to close in Xxx Xxxx xx Xxx Xxxx, Xxxxxx, Tokyo, then payment of principal or interest need not be made on such date but may be made on the next succeeding
day which is not a day on which banking institutions are authorized or obligated by law to close in The City of New York, London or Tokyo, with the same force and effect as if made on the date for such payment, and no interest shall accrue for the
period after such date.
In the Fiscal Agency Agreement (as defined in paragraph 3), Issuer and Japan have agreed
that until the date on which the Securities shall have been delivered to
- 2 -
the Fiscal Agent for cancellation, or become due and payable and monies sufficient to pay the principal of and interest on all of the Securities
shall have been made available for payment and either paid or returned to Issuer or Japan as provided herein (the “Agency Maintenance Termination Date”), Issuer and Japan will at all times maintain an office or agency in the Borough of
Manhattan, The City of New York, where Securities may be presented or surrendered for payment. And so long as the Securities are listed on the Luxembourg Stock Exchange and if the Luxembourg Stock Exchange so requires, there shall be at all times a
paying agent in Luxembourg.
2. (a) All payments of principal and interest by Issuer in
respect of this International Global Security will be made without withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of
Japan, or any authority therein or thereof having power to tax (“Taxes”), unless the withholding or deduction of such Taxes is required by law. In that event, Issuer will pay such additional amounts (“Additional Amounts”) as may
be necessary in order that the net amounts received by any beneficial owner of this International Global Security after such withholding or deduction shall equal the respective amounts of principal and interest which would have been receivable in
respect of this International Global Security in the absence of such withholding or deduction, except that no such Additional Amounts shall be payable with respect to this International Global Security;
(i) to, or to a third party on behalf of, any beneficial owner of this International Global Security that is a
non-resident of Japan or a non-Japanese corporation and is liable for such Taxes in respect of this International Global Security by reason of such beneficial owner’s having some connection with Japan other than the mere holding of this
International Global Security; or
(ii) to, or to a third party on behalf of, any beneficial owner
of this International Global Security that would otherwise be exempt from any such withholding or deduction but that fails to comply with any applicable requirement to provide the Exemption Information (as defined in paragraph 2(b)) to the Fiscal
Agent (as defined in paragraph 3), or whose Exemption Information is not duly communicated through the Participant (as defined in paragraph 2(b)) and Euroclear Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”) or
Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) to the Fiscal Agent; or
(iii) to, or to a third party on behalf of, any beneficial owner of this International Global Security that is for Japanese tax purposes treated as a resident of Japan or a Japanese corporation (except for (A) a Designated Financial
Institution (as defined in paragraph 2(b)) that complies with the requirement to provide the Exemption Information or to submit a Claim for Exemption and (B) a resident of Japan or a Japanese corporation that duly notifies the Fiscal Agent of its
status as exempt from Taxes to be withheld or deducted by Issuer by reason of such
- 3 -
resident or Japanese corporation receiving interest on this International Global Security through a payment handling agent in Japan appointed by it);
(iv) more than 30 days after the Relevant Date (as defined in this paragraph 2(a)), except to the extent that any
beneficial owner of this International Global Security would have been entitled to such Additional Amounts for payment at the expiration of such 30-day period;
(v) where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to any European Union Directive on the
taxation of savings implementing the conclusions of the ECOFIN Council meeting of November 26-27, 2000 or any law implementing or complying with, or introduced in order to conform to, such Directive and withholding could not be avoided by
establishing or making payments through a paying agent outside of the European Union; or
(vi) to,
or to a third party on behalf of, a beneficial owner of this International Global Security who would have been able to avoid such withholding or deduction by presenting this Security to another paying agent in a Member State of the European Union.
As used herein, the “Relevant Date” means the date on which such payment first becomes due, except
that, if the amount of the moneys payable has not been received by the Fiscal Agent on or prior to such due date, it means the date on which, the full amount of such moneys having been so received, notice to that effect shall have been duly
published as set forth in paragraph 6.
(b) For the purpose of sub-paragraphs (ii) and (iii)
above:
(i) where this International Global Security is held through a certain participant of
Euroclear or Clearstream, Luxembourg or a certain financial intermediary (each, a “Participant”), in order to receive payments free of withholding or deduction by Issuer for, or on account of Taxes, if the relevant beneficial owner of this
International Global Security is (A) a non-resident of Japan or a non-Japanese corporation or (B) a Japanese financial institution falling under certain categories prescribed by the Special Taxation Measures Law (Law No. 26 of 1957, as amended), and
the cabinet order (No. 43 of March 31, 1957, as amended) thereunder (together with ministerial ordinances and other regulations thereunder, the “Law”) ( a “Designated Financial Institution”), all in accordance with the Law, such
beneficial owner shall, at the time of entrusting a Participant with the custody of this International Global Security, provide certain information prescribed by the Law to enable the Participant to establish that such beneficial owner is exempted
from the requirement for Taxes to be withheld or deducted (the “Exemption Information”) and advise the Participant if such beneficial owner ceases to be so exempted; and
- 4 -
(ii) where this International Global Security is not held by a
Participant, in order to receive payments free of withholding or deduction by Issuer for, or on account of, Taxes, if the relevant beneficial owner of this International Global Security is (A) a non-resident of Japan or a non-Japanese corporation or
(B) a Designated Financial Institution, all in accordance with the Law, such beneficial owner shall on or prior to each time on which it receives interest, submit to the Fiscal Agent a claim for exemption from withholding tax (Hikazei Tekiyo
Shinkokusho) (a “Claim for Exemption”) in the form obtainable from the Fiscal Agent stating, among other things, the name and address of such beneficial owner, the title of this International Global Security, the relevant interest payment
date, the amount of interest and the fact that such beneficial owner is qualified to submit the Claim for Exemption, together with the documentary evidence showing that such beneficial owner is a non-resident of Japan or a non-Japanese corporation
or a Designated Financial Institution.
Any reference in this International Global Security or the guarantee of
Japan in the form provided in the Fiscal Agency Agreement to principal or interest shall be deemed also to refer to any Additional Amount which may be payable under this paragraph 2.
3. This International Global Security is one of a duly authorized issue of ¥75,000,000,000 (seventy-five billion Japanese yen) aggregate
principal amount of 1.70% Japanese Yen Guaranteed Bonds due September 20, 2022 (herein called the “Securities”). The Securities are issuable only as fully registered Securities without coupons in denominations of ¥1,000,000 and any
integral multiple thereof. For the benefit of the Registered Holders (as defined in this paragraph 3) from time to time of the Securities, Issuer has entered into a Fiscal Agency Agreement (the “Fiscal Agency Agreement”), dated as of
December 6, 2002, with Japan, The Bank of Tokyo-Mitsubishi, Ltd., London Branch, as Fiscal Agent and Principal Paying Agent, Bank of Tokyo-Mitsubishi Trust Company, as the U.S. representative of the Fiscal Agent (the “U.S.
Representative”), and Bank of Tokyo-Mitsubishi (Luxembourg) S.A., as Paying Agent, with respect to the Securities, copies of which Fiscal Agency Agreement are on file and available for inspection at the office of the Fiscal Agent. The Bank of
Tokyo-Mitsubishi, Ltd., London Branch, also acting through Bank of Tokyo-Mitsubishi Trust Company in the capacity as the U.S. Representative, and its successors as Fiscal Agent are herein called the “Fiscal Agent”. In acting under the
Fiscal Agency Agreement, the Fiscal Agent is acting solely as agent for Issuer and Japan and does not assume any obligation or relationship of agency or trust for or with the Registered Holder of this International Global Security except as
specifically described below. As used herein, the term “Registered Holder” of a Security means the person in whose name such Security is registered in the Security Register (as defined in paragraph 9).
(a) Notwithstanding any other provision of the Fiscal Agency Agreement or this International Global Security, this International Global
Security may be transferred to, or exchanged for Securities in definitive registered form registered in the name of, a
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person other than a common depositary for Euroclear and Clearstream, Luxembourg, a nominee of a common depositary for Euroclear and Clearstream,
Luxembourg or successor of a common depositary for Euroclear and Clearstream, Luxembourg or its nominee if Euroclear or Clearstream, Luxembourg notifies Issuer that it is unwilling or unable to continue as depositary for such International Global
Security and a successor is not appointed by Issuer within 90 days after receiving such notice or becoming aware that Euroclear or Clearstream, Luxembourg is no longer so registered, or Issuer, in its sole discretion, instructs the Fiscal Agent in
writing that the International Global Security shall be so transferable and exchangeable. Securities in definitive registered form issued in exchange for this International Global Security will be registered in such names as an authorized
representative of the common depositary for Euroclear and Clearstream, Luxembourg, pursuant to instructions from direct and indirect Participants in Euroclear or Clearstream, Luxembourg, shall request, and issued in denominations of ¥1,000,000
and integral multiples thereof.
4. This International Global Security is subject to
retirement of redemption as hereinafter provided. Redemption of this International Global Security pursuant to this paragraph 4 shall be made upon the notice, in the manner and with the effect hereinafter set forth.
5. In order to provide for the payment of principal of and interest on the Securities as the same shall become due,
Issuer does hereby agree to pay to the Fiscal Agent in lawful money of Japan the amounts set forth below in this paragraph, to be held in trust and applied by the Fiscal Agent as hereinafter set forth:
(a) Issuer shall pay to the Fiscal Agent semi-annually on a date not later than each semi-annual interest payment date (or such other date
when interest is payable, as provided in paragraph 8(b)) an amount sufficient to pay the interest becoming due on all Securities on such interest payment date, and the Fiscal Agent shall apply the amounts so paid to it to the payment of such
interest on such interest payment date.
(b) On a date not later than the redemption or maturity date (or such
other date when principal is payable as provided in paragraph 8(b)) of the Securities, Issuer shall pay to the Fiscal Agent an amount which, together with any monies then held by the Fiscal Agent and available for the purpose, shall be equal to the
entire amount of principal and interest to be due on such redemption or maturity date on the Securities called for redemption or then outstanding, and the Fiscal Agent shall apply such amount to the payment of principal of and interest on such
Securities in accordance with the terms thereof.
(c) The Fiscal Agent will arrange directly or with another
paying agent for the payment from the funds furnished by the Issuer of the principal of and interest on this International Global Security in immediately available funds by Japanese yen check, or by transfer to a Japanese yen account maintained by
the payee, or otherwise in accordance with the IPMA Operating Manual on “Japanese Withholding Tax on Certain Eurobond
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Issues” dated 24th June, 1998 (the “Manual”), as such Manual may be amended from time to time.
(d) Any monies paid to the Fiscal Agent for the payment of principal of or interest on any Securities and remaining unclaimed at the end
of two years after such principal or interest shall have become due and payable (whether at maturity, upon any interest payment date, upon call for redemption or otherwise) shall be repaid to Issuer or Japan, whichever deposited such monies, and
upon such repayment the aforesaid trust shall terminate with respect to such monies and all liability of the Fiscal Agent with respect to such monies shall thereupon cease, without, however, limiting in any way the unconditional obligation of Issuer
(subject, however, to any applicable statute of limitations or prescription) to pay principal of and interest on this International Global Security.
6. The Securities (including this International Global Security) may be redeemed for cash at the option of Issuer in whole, but not in part, on not more than sixty (60)
days’ and not less than thirty (30) days’ irrevocable notice to the Registered Holders of the Securities, at a redemption price for each Security equal to the principal amount thereof, together with accrued interest to the date fixed by
Issuer for redemption and any Additional Amounts, if Issuer determines and certifies to the Fiscal Agent immediately prior to the giving of the notice that, as a result of any change in, or amendment to, the laws or treaties (or any regulations or
rulings promulgated thereunder) of Japan (or any political subdivision or taxing authority of Japan) affecting any Taxes, or any change in official position regarding the application or interpretation of these laws, treaties regulations or rulings
(including a holding, judgment or order by a court of competent jurisdiction), which change, amendment, application or interpretation becomes effective on or after the date of the applicable prospectus, Issuer is, or on the next interest payment
date would be, required to pay any Additional Amounts for the Securities that cannot be avoided by measures reasonably available to Issuer; provided that no notice of redemption shall be given earlier than ninety (90) days prior to the earliest date
on which Issuer would be obligated to make the withholding if a payment in respect of the Securities were then due. Prior to the publication and mailing of any notice of redemption of the Securities pursuant to the foregoing, Issuer will deliver to
the Fiscal Agent an opinion of independent counsel of recognized standing or an opinion of a tax consultant of recognized standing to the effect that the circumstances referred to above exist. The Fiscal Agent shall accept such opinion of counsel or
tax opinion, as the case may be, as sufficient evidence of the satisfaction of the conditions precedent described above, in which event it shall be conclusive and binding on the Registered Holders of the Securities.
Notice of intention to redeem the Securities, specifying the redemption date and the place or places where the redemption price will be
paid, shall be given by publication at least once in a daily newspaper in the English language, of general circulation in The City of New York and in a daily newspaper in the English language of general circulation in London, England, such
publication to be not less than thirty (30) days nor more than sixty (60) days prior to the redemption date, provided that for so long as the
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Securities are held in book-entry form such notices may be given by delivery of the relevant notice to DTC, Euroclear and Clearstream,
Luxembourg, for communication by them to their respective participants in substitution for publication in any such newspaper, and provided further that for so long as the Securities are listed on the Luxembourg Stock Exchange and the rules of the
Luxembourg Stock Exchange so require, the Fiscal Agent shall, upon Issuer’s request, cause such notice to be published, on behalf of Issuer at Issuer’s cost, in a leading newspaper having general circulation in Luxembourg (which is
expected to be the Luxemburger Wort). In case, by reason of the temporary or permanent suspension of the publication or general circulation of any newspaper or by reason of any other cause, it shall be impossible or impracticable to publish
such notice in the manner herein provided, then such method of publication in lieu thereof as shall be approved by the Fiscal Agent shall constitute a sufficient publication of such notice. Such notice shall also be sent by the Fiscal Agent by mail,
postage prepaid, not less than thirty (30) days nor more than sixty (60) days prior to the redemption date to the Registered Holders of all the Securities, at the addresses of such Registered Holders as they shall appear in the Security Register (as
defined in paragraph 9); but no failure to mail such notice to such Registered Holders nor any defect therein nor failure to receive the same shall affect the validity and effectiveness of the call and redemption of any Securities so to be redeemed.
Notice having been so given, the Securities so called for redemption shall become due and payable on the redemption date so designated at the redemption price, and upon surrender thereof, the Securities will be paid at the redemption price together
with all accrued interest (unless the redemption date is a date for the payment of interest) in lawful money of Japan, at the place or places specified in such notice. From and after the redemption date, if monies for the redemption of all the
Securities to be redeemed, shall have been available at the office of the Fiscal Agent for redemption on the redemption date, the Securities so called for redemption shall cease to bear interest and the only right of the Registered Holders of the
Securities shall be to receive payment of the redemption price in accordance with the terms of such Securities.
7. This International Global Security will become void unless presented for payment within a period of five years from the Relevant Date (as defined in paragraph 2).
8. (a) In the event of a default by Issuer (i) in the payment when due of principal of or interest on any of the
Securities and the continuance of such default for a period of 30 days, or (ii) in the performance of any other covenant contained in the Securities and the continuance of such default for a period of 90 days after written notice thereof to Issuer
from the Registered Holder of any International Global Security shall have been received by the Fiscal Agent, then in any such case the principal amount of this International Global Security shall, at the option of and upon written demand to the
Fiscal Agent at said office by the Registered Holder hereof, mature and become due and payable upon the date that such written demand is received by the Fiscal Agent, unless prior to such date Issuer shall have cured all such defaults in respect of
all the Securities. Any amount of interest or principal so in default in respect of this International Global Security shall bear interest (if, and to the extent permitted by law) at the rate specified in the title of this International Global
Security until such default shall have been cured.
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9. In any case where the date for the payment of the
principal of or interest on any International Global Security shall be a day on which banking institutions are authorized or obligated by law to close in The City of New York, London, Tokyo or in any other applicable place of payment, then payment
of principal or interest need not be made on such date at such place but may be made on the next succeeding day at such place of payment which is not a day on which banking institutions are authorized or obligated by law to close, with the same
force and effect as if made on the date for the payment of the principal of or interest on such International Global Security, and no interest shall accrue for the period after such date to such next succeeding date.
10. The transfer of this International Global Security is registrable on the Security Register (as herein defined)
upon surrender of this International Global Security for registration at the office of the Fiscal Agent duly endorsed by, or accompanied by a written instrument of transfer in a form approved by the Fiscal Agent duly executed by, the Registered
Holder hereof or such Registered Holder’s attorney duly authorized in writing. Upon surrender of this International Global Security for registration of transfer by the Registered Holder hereof, Issuer shall execute, and the Fiscal Agent shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities, of any authorized denominations and of a like aggregate principal amount, and registered in such name or names as may be requested by the
Registered Holder hereof, dated the date of authentication thereof and bearing the guarantee of Japan in the form provided in the Fiscal Agency Agreement. Issuer, Japan and the Fiscal Agent may deem and treat the Registered Holder hereof as the
absolute owner hereof (notwithstanding any notice of ownership or writing hereon made by anyone) for the purpose of receiving payment hereof and for all other purposes, whether or not this International Global Security shall be overdue. Issuer
covenants that, until the Agency Maintenance Termination Date, it will at all times maintain in London an office or agency for the registration and registration of transfers, as aforesaid, of Securities and where notices and demands to or upon
Issuer or Japan in respect of the Securities and the Fiscal Agency Agreement may be served. Issuer has appointed the Fiscal Agent as its agent for such purpose and has agreed to cause to be kept at the office of the Fiscal Agent in London a register
(the register maintained in such office being herein sometimes referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, Issuer shall provide for such registration and registration of
transfers.
In the manner and subject to the limitations provided in the Fiscal Agency Agreement, Securities may
be exchanged for a like aggregate principal amount of Securities of authorized denominations bearing the guarantee of Japan in the form provided in the Fiscal Agency Agreement. Issuer covenants that until the Agency Maintenance Termination Date, it
will at all times maintain an office or agency in London where Securities may be surrendered in exchange for Securities in other authorized denominations in accordance with the terms hereof and of the Fiscal Agency Agreement. Issuer has appointed
the Fiscal Agent as its agent for such purpose.
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The Fiscal Agent shall not be required to exchange or to register the transfer of
any Security selected for redemption.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of Issuer guaranteed by Japan evidencing the same debt, and entitled to the same benefits, as the Securities surrendered upon such registration of transfer or exchange. Any new International Global Security
delivered pursuant to this paragraph 9 shall be so dated that neither gain nor loss of interest shall result from such registration or exchange.
No service charge shall be made for any such exchange or registration of transfer, but Issuer, Japan or the Fiscal Agent may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.
11. In case any International Global Security
shall at any time become mutilated or destroyed or stolen or lost then, provided that such International Global Security, or evidence of the destruction, theft or loss thereof (together with the indemnity hereinafter referred to and such other
documents or proof as may be required in the premises) shall be delivered the to Fiscal Agent or its U.S. Representative, a replacement International Global Security of like tenor and principal amount and bearing the guarantee of Japan in the form
provided in the Fiscal Agency Agreement will be issued by Issuer and, at its request, authenticated and delivered by the Fiscal Agent in exchange for the International Global Security so mutilated, or in lieu of the International Global Security
destroyed or stolen or lost; and provided further that, in the case of destroyed, stolen or lost Securities, Issuer, Japan and the Fiscal Agent shall have received evidence satisfactory to them that such Securities were destroyed, stolen or lost,
and shall also have received an indemnity satisfactory to each of them. All expenses and reasonable charges associated with procuring such indemnity and with the preparation, authentication and delivery of a replacement International Global Security
shall be borne by the Registered Holder of the International Global Security mutilated, destroyed, stolen or lost. In case such mutilated, destroyed, stolen or lost International Global Security has become or is about to become due and payable,
Issuer in its discretion may, instead of issuing a new International Global Security, pay or cause to be paid such International Global Security.
Every replacement International Global Security issued pursuant to this paragraph 10 in exchange for or in lieu of any mutilated, destroyed, stolen or lost International Global Security shall
constitute an original additional contractual obligation of Issuer guaranteed by Japan, whether or not the mutilated, destroyed, stolen or lost International Global Security shall be at any time enforceable by anyone. Any replacement International
Global Security delivered pursuant to this paragraph 10 shall be so dated that neither gain nor loss of interest shall result from such replacement.
Upon the issuance of any replacement International Global Security under this paragraph 10, Issuer, Japan or the Fiscal Agent may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation
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thereto and any other expenses (including the fees and expenses of the Fiscal Agent) connected therewith.
The provisions of this paragraph 10 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, stolen or lost Securities.
12. Subject
to paragraph 13, Issuer hereby certifies and declares that all acts, conditions and things required to be done and performed and to have happened precedent to the creation and issuance of this International Global Security and its guarantee by
Japan, and to constitute the same the valid obligations of Issuer and of Japan, respectively, in accordance with their terms, have been done and performed and have happened in due and strict compliance with the applicable laws of Japan.
13. The Fiscal Agency Agreement may be modified or amended by Issuer, Japan and the Fiscal
Agent, and the terms and conditions of the Securities may be modified or amended by Issuer and Japan, without the consent of the Registered Holder of any International Global Security for the purpose of adding to the covenants of Issuer or Japan for
the benefit of the Registered Holders, surrendering any right or power conferred upon Issuer or Japan, securing the Securities pursuant to the requirements of the Securities or otherwise, curing any ambiguity, or curing, correcting or supplementing
any defective provision therein, or in any manner which Issuer, Japan and the Fiscal Agent may mutually deem necessary or desirable, which, in the case of the Fiscal Agency Agreement, shall not be inconsistent with the Securities, and which shall
not adversely affect the interests of the Registered Holders of the Securities in any material respect, to all of which each Registered Holder of any International Global Security shall, by acceptance thereof, consent.
14. This International Global Security shall not become valid or obligatory for any purpose unless and until this
International Global Security has been authenticated by The Bank of Tokyo-Mitsubishi, Ltd., London Branch, or its successor, as Fiscal Agent.
15. This International Global Security shall be governed by, and interpreted in accordance with, the laws of the State of New York except with respect to its authorization and
execution by Issuer and any other matters required to be governed by the laws of Japan.
16. As more fully set forth in the Fiscal Agency Agreement, Issuer has appointed the U.S. Representative of the Fiscal Agent as its authorized agent upon which process may be served in any action arising out of
or based on the Securities or the Fiscal Agency Agreement which may be instituted in any State or Federal court in The City of New York by the Registered Holder of this International Global Security, and Issuer hereby expressly accepts the
jurisdiction of any such court in respect of such action. Such appointment shall be irrevocable until the Agency Maintenance Termination Date, unless and until a successor Fiscal Agent shall have been appointed by Issuer as its authorized agent for
such purpose and such successor Fiscal Agent shall have accepted such appointment. Notwithstanding the foregoing, any action arising out of or based on the
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Securities may be instituted by the Registered Holder of this International Global Security in any competent court in Japan. Issuer hereby
waives irrevocably any immunity to which it might otherwise be entitled in any action based on the Securities which may be instituted by the Registered Holder of any International Global Security in any State or Federal court in The City of New York
or in any competent court in Japan. This waiver is intended to be effective upon execution of this International Global Security without any further act by Issuer before any such court, and introduction of this International Global Security into
evidence shall be final and conclusive evidence of such waiver.
IN WITNESS WHEREOF, Issuer has caused this
International Global Security to be executed with the facsimile signature of the Governor or a duly authorized agent of the Governor of Issuer in Xxx Xxxx xx Xxx Xxxx, Xxxxx xx Xxx Xxxx, Xxxxxx Xxxxxx of America.
Dated:
| DEVELOPMENT BANK OF JAPAN | ||
| By |
| |
| Name: [Governor or Duly Authorized Agent] | ||
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[Form of Certificate of Authentication]
This is one of the Securities within referred to. The undersigned hereby represents that it has not authenticated Securities in excess of
an aggregate principal amount of ¥75,000,000,000 (other than Securities issued in exchange for and upon the cancellation of a like aggregate principal amount of other Securities, and Securities issued in lieu of destroyed, stolen or lost
Securities).
| THE BANK OF TOKYO-MITSUBISHI, LTD., LONDON BRANCH as Fiscal Agent | ||
| By |
| |
| Authorized Signatory | ||
SCHEDULE TO THE INTERNATIONAL GLOBAL SECURITY
DEVELOPMENT BANK OF JAPAN
1.70% JAPANESE YEN GUARANTEED BONDS DUE
SEPTEMBER 20, 2022
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EXHIBIT B
(FORM OF GUARANTEE FOR SECURITY)
GUARANTEE BY JAPAN
Japan hereby unconditionally and irrevocably guarantees to the holder of the within Security due and punctual payment of the principal of said Security, interest
thereon and any Additional Amounts as defined in paragraph 2 of said Security, according to the tenor of said Security, as and when the same shall become due and payable; waives any requirement that the holder of said Security, in the event of any
default in such payment by the Development Bank of Japan, first make demand upon or seek to enforce remedies against the Development Bank of Japan before demanding payment under, or seeking to enforce, this guarantee; covenants that this guarantee
will not be discharged except by complete performance of the obligations contained in said Security and this guarantee; and covenants that the guarantee herein contained shall be a general obligation of Japan, for the performance of which the full
faith and credit of Japan is hereby pledged and shall rank pari passu in right of payment with all other general obligations of Japan without any preference one above the other by reason of priority of date of issue, currency of payment or
otherwise.
This guarantee shall not be valid or obligatory for any purpose until the within Security has been
authenticated by The Bank of Tokyo-Mitsubishi, Ltd., London Branch, or its successor as Fiscal Agent duly appointed by the Development Bank of Japan and Japan for such purpose.
This guarantee shall be governed by, and interpreted in accordance with, the laws of the State of New York except with respect to its authorization and execution by Japan
and any other matters required to be governed by the laws of Japan.
Dated:
| JAPAN | ||
| By |
| |
| [Minister of Finance] | ||
