Dovish Bank of Japan monetary policy is fueling the busiest start to issuance in Japan’s domestic bond market for overseas issuers in five years, with Electricite de France adding to an uptick in deals on Thursday.

The French electricity provider sold ¥33 billion ($232 million) of Samurai bonds, bringing issuance in the market to ¥450.6 billion since April 1, the start of Japan’s fiscal year. It was EDF’s first such offering since 2017 and is set to be followed Friday by a deal from Korean Air Lines Co.

BOJ Governor Kazuo Ueda left their negative rate and yield curve control program unchanged last week, and that has put a renewed spotlight on diverging borrowing costs in Japan with other developed markets. Yields on yen corporate bonds have declined this year as bets on a pivot by the BOJ away from its ultra-loose monetary policy eased.

By contrast, the cost to sell high-grade debt in the US and Europe has risen in 2023, with the Federal Reserve and European Central Bank signaling more rate hikes to come.

The Japanese market is becoming an easier choice for overseas issuers seeking to diversify their funding given differences in “interest rate views” between Japan, the US, and Europe, said Masahiro Koide, joint head of the products business division at Mizuho Securities Co.