Tokyo Sells Bond to Help Smaller Firms Get Cash as Virus Surges

Japan’s capital is raising funds to help smaller businesses survive the pandemic as coronavirus cases surge to record levels.

The Tokyo Metropolitan Government priced a 60 billion yen ($577 million) bond at 0.01% on Friday, which it will use solely for loans to such firms, according to the municipality. More businesses ranging from restaurants to construction firms are closing their doors after suffering plunging sales due to the impact of the virus.

Since the pandemic started, 740 Japanese firms have filed for bankruptcy related to Covid-19, according to data from research firm Teikoku Databank Ltd. About a quarter of those ...