We, Mizuho Financial Group, Inc., hereby announce that, subject to prior approval of the related authorities, we plan to repurchase (through the exercise of our mandatory redemption option) and cancel approximately 250.7 billion yen (250.0 billion yen on an issued-price basis) of Seventh Series Class VII Preferred Shares held by the Resolution and Collection Corporation ("RCC"), as described in detail below.
The repurchase will be executed within the stock repurchase limit approved at the general meeting of our shareholders in June 2005, and the exercise of our mandatory redemption option of the above Preferred Shares will be pursuant to the purpose of "The Temporary Measures to the Requests for the Sale of Preferred Shares Issued to Strengthen the Capital Base or the Prepayment Proposal of Public Funds" released by the Deposit Insurance Corporation of Japan.
As a result of this repurchase, together with the repurchases of preferred shares (public funds) of 482.6 billion yen during the fiscal year ended March 31, 2005 and 616.4 billion yen in August of this year, the aggregate repurchase amount of preferred shares (public funds) will be 1,349.0 billion yen (on an issued-price basis), and the remaining outstanding balance of public funds invested in us will be 600.0 billion yen (on an issued-price basis). The cumulative repayment amount of public funds, including the subordinated bonds (public funds) which we redeemed in full during the last fiscal year, will be 2,349.0 billion yen, which is equivalent to approximately 79.6% of the initial amount of public funds of 2,949.0 billion yen invested in us.
Upon this repurchase, we will have repurchased and cancelled all convertible preferred shares (public funds).
We aim to complete the repayment of the remaining preferred shares (public funds), totaling 600.0 billion yen, all of which are non-convertible, by the end of March 2007, while maintaining a sufficient level of Capital Adequacy Ratios through the steady accumulation of retained earnings.
Details of repurchase and cancellation
Seventh Series Class VII Preferred Shares
| (1) Number of shares to be repurchased | 125,000 shares(100% of issued shares) |
| (2) Repurchase price | 2,005,880 yen per share |
| (3) Total amount of repurchase | 250,735,000,000 yen |
| (4) Repurchase from | RCC |
| (5) Repurchase and cancellation date (scheduled) | October 12, 2005 |
(Reference) Details of preferred shares to be repurchased
Seventh Series Class VII Preferred Shares
| (1) Original date of issuance | March 31, 1999 |
| (2) Number of shares issued | 125,000 shares |
| (3) Price of shares issued | 2 million yen per share |
| (4) Total amount issued | 250 billion yen |
| (5) Others | Redeemable during April 1, 2004 through September 30, 2006, at our option, at a redemption price equal to the sum of 2 million yen plus accrued dividends per share |
This document is prepared in order to announce specific facts relating to Mizuho Financial Group's preferred shares (public funds) and does not constitute an offer for sale or solicitation for investment or other similar activity in or outside of Japan.