Mizuho Financial Group, Inc. ("MHFG") hereby announces that the Board of Directors has resolved to repurchase approximately 260 billion yen (approximately 249.9 billion yen on an issued price basis) of Second Series Class II, Eighth Series Class VIII and Ninth Series Class IX Preferred Shares held by the Resolution and Collection Corporation ("RCC"), as described in detail later, with the approval by related authorities.
This repurchase of the subject preferred shares will be executed within the remaining repurchase limit (approximately 260 billion yen) that is, after deducting approximately 240 billion yen of preferred shares repurchased in August 2004, a part of the aggregated repurchase limit of 500 billion yen approved at the general meeting of our shareholders in June 2004. We consulted it with related authorities and obtained authorization following "The Temporary Measures to the Requests for the Sale of Preferred Shares Issued to Strengthen the Capital Base or the Prepayment Proposal of Public Fund" released by the Deposit Insurance Corporation of Japan.
In addition, we plan to cancel those preferred shares after the repurchase. As the result of this repurchase, together with the repurchase in August 2004, the aggregated repurchase amount of preferred shares (public funds) during this Fiscal 2004, ending March 31, 2005, will be 482.6 billion yen (on an issued price basis). Moreover, by redeeming 100 billion yen of the remaining subordinated bonds (public funds) by the end of this month with the approval by related authorities, the outstanding balance of public funds in Mizuho at the end of March 2005 will be 1,466.4 billion yen (all of which are preferred shares and on an issued price basis). The cumulative repayment amount of public funds by that time will be 1,482.6 billion yen, which is equivalent to approximately 50.3% of the initial amount of public funds (2,949 billion yen).
We strive to make early repayment of the remaining public funds of preferred shares in adherence with the spirit of related laws and regulations such as the Law of Emergency Measures for Early Strengthening of Financial Functions.
Details of repurchase
1. Second Series Class II Preferred Shares
2. Eighth Series Class VIII Preferred Shares
3. Ninth Series Class IX Preferred Shares
(Reference) Details of preferred shares to be repurchased
1. Second Series Class II Preferred Shares
2. Eighth Series Class VIII Preferred Shares
3. Ninth Series Class IX Preferred Shares
In connection with the repurchase above, our subsidiary, Mizuho Holdings, Inc., will repurchase 38,600 shares of its Second Series Class II Preferred Shares, 65,700 shares of its Eighth Series Class VIII Preferred Shares and 33,000 shares of its Ninth Series Class IX Preferred Shares held by MHFG on the same day of our repurchase.
This document is prepared in order to announce specific facts relating to Mizuho Financial Group's preferred shares of public funds and does not constitute an offer for sale or solicitation for investment or other similar activity in and outside of Japan.