New York, February 26, 2019 – Mizuho Americas today announced that it has issued its first Secured Overnight Financing Rate (SOFR)-linked Certificate of Deposit (CD). The $200 million, floating rate CD issued by Mizuho Bank, Ltd. in New York has a six-month tenor and is the first product of its kind to be issued by a Japanese bank in the US.
“Through this issuance, we look to contribute to the acceleration of SOFR-linked transactions in the US and take a leadership role in leveraging our global expertise to introduce innovative product offerings in the region,” said Teiji Teramoto, chairman & CEO, Mizuho Americas. “Financial transactions linked to SOFR provide our clients with increased transparency and better insight into this important segment of the US market.”
SOFR is a benchmark established in April 2018 by the Federal Reserve Bank of New York that provides a measure of the cost of financing Treasury securities overnight. It serves as an alternative reference rate to the US dollar London Interbank Offered Rate (USD LIBOR) which the United Kingdom Financial Conduct Authority has signaled could be phased out by the end 2021. SOFR is a nearly risk-free reference rate, however it does not consider the credit risk of individual banks that use it.
Issuer: Mizuho Bank, Ltd. (New York Branch)
Amount: USD 200 million.
Issue Date: February 22nd, 2019
Tenor: 6 Month
About Mizuho Americas
Mizuho Americas is a leading financial institution comprising several legal entities, which together offer clients corporate and investment banking, financing, securities, treasury services, asset management, research and more. With professionals in offices throughout the US, Canada, Mexico, Brazil and Chile, Mizuho’s operations in the Americas connect a broad client base of major corporations, financial institutions and public sector groups to local markets and a vast global network. Learn more at mizuhoamericas.com.
Mizuho Americas is an integral part of the Japan-based Mizuho Financial Group, Inc. (NYSE: MFG). Mizuho Financial Group is one of the largest financial institutions in the world, offering comprehensive financial and strategic services including private banking and venture capital through its subsidiaries. The group has over 900 offices and 60,000 employees worldwide in nearly 40 countries throughout the Americas, EMEA, and Asia. As of December 31, 2018, its total assets were $1.8 trillion. Learn more about Mizuho Financial Group at www.mizuho-fg.com.
For inquiries, please contact:
Jim Gorman, Mizuho Americas
Laura London, Mizuho Americas
P.J. Kinsella, Paragon Public Relations