Japan Bank for International Cooperation, the government's main overseas lender, sold its first bonds for funding environmental protection work Thursday, according to a release on its Web site.
Proceeds from the sale will help Japan play a more active role in working with developing countries to cope with problems arising from global warming and higher food prices.
Tokyo-based JBIC sold ¥20 billion in five-year bonds priced to yield 1.514 percent, or 18 basis points higher than government debt with similar maturities. A basis point is 0.01 percentage point.
JBIC is rated AA, the third-highest level, by Standard & Poor's. Moody's Investment Service rates it Aaa, its highest grade.
The proceeds from the sale will fund the bank's international projects for environmental improvement and conservation, which include initiatives such as helping the Republic of Tunisia fight flooding and deforestation.
Japan will host the Group of Eight summit in Hokkaido in July. Ahead of that meeting, Prime Minister Yasuo Fukuda has sought to raise Japan's profile as a leader in the fight against global warming and food inflation.
In May, at a Yokohama gathering of 51 African leaders, Japan vowed to double its aid to the continent with $4 billion in loans and a $2.5 billion fund to spur private investment.