A yen-denominated bond which is issued in Japan by a non-domiciled (foreign) borrower. This type of foreign bond is mainly used by firms willing to raise capital in the yen market or to diversify its sources of debt. Samurai bonds have maturities starting from five years, and are subject to Japan’s laws and regulations (fore example, just 25% of primary issue bonds can be held by foreign investors. However, trading in secondary markets is not constrained). Typically, samurai bonds are unsecured, i.e., not guaranteed by the foreign issuer, and are also not listed.

In 1970, the Asian Development Bank issued samurai bonds for the first time.