The Tokyo Metropolitan Government decided Monday to issue bonds under terms it will set by evaluating market conditions, officials said.
The move, recommended by a study panel made up of scholars and other experts, is aimed at enabling Tokyo to issue bonds with favorable interest rates and other terms, the officials said.
While local governments previously acted uniformly in offering bonds to the public, discretionary issuance has gradually increased since April 2002.
Tokyo will be the first local government to offer bonds without setting issue terms through consultations with the central government.
The metropolitan government expects to cut issue costs by reducing the commission it pays to financial institutions.