Mizuho Raises $2.5 Billion in Third Benchmark Issue This Year
Mizuho Financial Group Inc. (8411) raised $2.5 billion in its third dollar-denominated bond sale this year of benchmark size, or bigger than $500 million.
The lender’s Mizuho Corporate Bank Ltd. unit sold $1.5 billion of 1.55 percent, five-year securities that yield 90 basis points more than similar-maturity Treasuries and $1 billion of 2.95 percent debt due in 2022 at a relative yield of 130 basis points, according to data compiled by Bloomberg. Mizuho said last week it would book 173.7 billion yen ($2.2 billion) in losses related to domestic stock holdings.
Japan’s third-biggest bank by market value last sold more than $500 million of dollar obligations in July, issuing $1.5 billion of 4.2 percent, 10-year subordinated debt that traded at 103.4 cents on the dollar to yield 3.78 percent yesterday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The Tokyo-based lender also issued $1.5 billion of 2.55 percent, five year securities in March.
The new bonds may be rated A1 by Moody’s Investors Service, according to a person familiar with the offering who asked not to be identified, citing lack of authorization to speak publicly. Proceeds will be used for general corporate purposes, the person said.
The banking group expects to recognize the valuation losses in the three months ended Sept. 30, Mizuho said in a statement to the Tokyo Stock Exchange on Oct. 5. The lender owns stakes of more than 1,200 companies including electronics maker Sharp Corp., according to data compiled by Bloomberg.
To contact the editor responsible for this story: Alan Goldstein at email@example.com