Refers to a yen-denominated bond issued in Japan by non-Japanese companies. This kind of bond is subject to Japanese regulations. The issuer of the samurai bond is able to access investment capital available in Japan or can convert it into the issuing company's local currency to finance existing operations. These bonds can also be used to hedge foreign exchange rate risk.
Additional meaning of Samurai Bond:
Samurai bonds are not subject to Japan's withholding taxes.