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Earthquake Response to Be Focus of Social Bond Planned by Tokyo

  • About 80% of debt proceeds to go to disaster prevention steps
  • Tokyo sees 70% chance of magnitude-7 quake in next 30 years

Tokyo is planning to sell a social bond to help prepare for the eventuality of a giant earthquake in the world’s biggest metropolitan area.

The Tokyo Metropolitan Government is proposing to issue 30 billion yen ($231 million) of five-year social bonds later this month. About 80% of the proceeds will be used on disaster prevention measures as well as renovating old bridges and buildings that are at risk of collapse in a major quake, according to Kazumichi Saga, director of the bond section at the city’s finance bureau.