Power & Utilities Ecosystem

March 12, 2020

Energy & Utilities  Market Trends 

With an estimated $135 billion to be spent on renewable energy this year, Power & Utilities clients are keen on green, but the sector is mature in some areas, experimental in others.  Hear from Mizuho’s team of experts across banking, equity research, and equity capital markets on how they approach this rapidly changing sector.

Video Transcript:

Kris Grosshans: The real themes here are to get green. We've spent a considerable amount of money in the industry. I think in 2019, we're going to spend roughly $135 billion, which is being largely used to green up the industry. We're transitioning away from coal and nuclear, and to a degree natural gas, moving much more to wind and solar and other renewable sources, which are far more friendly to the environment.

Josh Weismer: Approaching green projects is something that the utilities seem to be very focused on, which is why they're making these huge investments in solar and wind. I think that's a trend that not only investors are demanding, but the public and their customers are demanding as well.

Kris Grosshans: Here at Mizuho, we provide comprehensive, corporate, and investment banking products and services to our clients in the Americas, working very closely with our partners in capital markets, including loan syndications, debt capital markets, US private placements, commercial paper, equity capital markets, derivatives, and our project finance team.

Chris Stolarski: Among our corporate clients, project finance enhances the services that Mizuho provides. We have specialists working closely with our utility clients to provide a whole range of solutions.

Josh Weismer: Working with all the members of the equity organization, we figure out tailored solutions to meet their strategic and financing needs.

Anthony Crowdell: We approach companies from a different method than maybe our competitors. We try to really focus on utility regulation at the local and national levels, and we dig deep and really try to meet with regulators throughout the state houses. Ultimately we try to make our research original, useful, so that clients really find value in it.

Paul Fremont: So over many years, we've built great relationships with management teams, with regulators, and with interveners, and we feel this provides us with unique insight into the companies that we cover, and distinguishes us from the competition.

Daniel Albert: With interest rates around the world near zero, the convertible market, specifically in the utilities segment, continues to be a very interesting place for issuers to tap. With all of that incremental information in the secondary markets, that knowledge helps us to give better information to the bankers, in terms of pricing new issues.

Kris Grosshans: Here in the US, we are taken very seriously by our client, by the marketplace, by the Street. We are a place that's on the move. We're a place that is working closely with clients. We're providing service, and products, and advice every day to our clients, so I think we're on a roll. I think Mizuho is doing a great job supporting the power utility clients in [the] Americas, and I expect that will continue.

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