Samurai Bond

Samurai bonds are corporate bonds issued in Japan by a non-Japanese company. 

Samurai bonds are yen-denominated bonds issue in Japan by a foreign company. The bonds are subject to Japanese bond regulations, attracting buyers (i.e., investors) from Japan and provide capital to a foreign issuer.  

Samurai bonds are identical to a bond issue in the US which is denominated in dollars. These bonds give the company issuer the opportunity to gain access to the Japanese market which is a large world investment market, or to avoid the capital markets in the company's own country which may not be developed or stable. Samurai bonds also give the company an opportunity to expand into the Japanese market without the currency risks normally associated with a foreign investment. The investment (and the obligation to repay the debt) is already in yen.