TOKYO — The Japan International Cooperation Agency (JICA) is set to issue up to $94 million in bonds as early as November to fund agriculture and fisheries projects in developing countries. This initiative aims to address rising food insecurity risks driven by high fertilizer prices and the looming impact of a "super" El Nino climate event.

The funding will support irrigation and other food security measures, particularly in regions like Asia where agricultural production faces increasing challenges. For example, the recent rice-planting season in India coincided with elevated fertilizer costs, exacerbating difficulties for farmers.

This move comes amid a broader surge in bond issuance, with Japan's convertible bond issuance reaching a 22-year high due to overseas inflows. Globally, corporate bond sales hit $3.7 trillion in the first half of the year, partly fueled by investments in AI technologies.

JICA's bond issuance reflects Japan's commitment to supporting sustainable agriculture and fisheries in vulnerable countries, helping to mitigate the adverse effects of climate change and economic pressures on food production.

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