July 7, 2023
Mizuho Financial Group, Inc.
Mizuho issues green bond
-The largest ESG bond issued by Japanese financial institutions-
On July 6, 2023, Mizuho Financial Group, Inc. (President & CEO: Masahiro Kihara) issued the green bond (USD 1,400 million), the largest ESG bond issued by Japanese financial institutions.
The new medium-term business plan, starting from FY2023 puts forth Mizuho's long-term vision for the world, centering on personal well-being and the achievement of a sustainable society and economy to support it. We used backcasting to determine our aim for the world in 10 years and then identified the strategies that should be the focus of our attention in order for us to attain our long-term vision. The response to climate change is positioned as the most important issue among one of our core business themes, Sustainability & Innovation. To realize a low-carbon society, we will contribute to the structural transformation of economy and industry, and the establishment of next-generation technologies by connecting industry-government-academia and providing the necessary financing for them. In terms of financing, we will increase money flow aimed at solving social issues, including the transition to a low-carbon society by increasing our sustainable finance target to JPY 100 trillion, which includes JPY 50 trillion in environment and climate change-related finance.
In order to increase the financing for the transition to a low-carbon society further, this green bond we have issued serves as a portion of funds for environmental and climate change-related finance and responds to the needs of investors who have a high level of interest in the environmental field. We have issued and managed green bonds based on a green bond framework we renewed in February 2023, which is in line with the International Capital Market Association's Green Bond Principles 2021. The framework has obtained a second-party opinion from Sustainalytics, a third-party certification organization.
We will provide the funds we raise through the issuance of this green bond to our subsidiary Mizuho Bank, Ltd. (President & CEO: Masahiko Kato), which will use them to finance environmentally-friendly projects, including renewable energy (hereinafter "green projects").
At Mizuho, we are strengthening our initiatives to realize sustainable society. We make challenges for SX (Sustainability Transformation) with our customers by providing not only sustainable finance to create money flow to solve environmental and social issues but also solutions leveraging our knowledge and capabilities beyond financings.
Summary of green bond
|Issuer||Mizuho Financial Group, Inc.|
|Issue amount||USD 1,400 million|
|Issue date||July 6, 2023|
|Maturity date||July 6, 2029 (The Issuer may redeem this green bond on Optional Redemption date)|
|Optional Redemption date||July 6, 2028|
|Interest rate||(i) From (and including) the Issue date to (but excluding) the Optional Redemption date : 5.778%
(ii) From (and including) Optional Redemption date to (but excluding) Maturity date : the applicable U.S. Treasury Rate plus 1.65%
|Use of proceeds||Mizuho Financial Group Inc. will provide the funds to Mizuho Bank, Ltd., which will use them to finance green projects.|
|This press release has been prepared for the sole purpose of publicly announcing Mizuho Financial Group's issuance of the notes, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The notes have not been, and will not be, registered under the Financial Instruments Exchange Act of Japan. The notes may not be offered or sold within Japan or in any other jurisdictions where registration is required for the offering of the notes absent registration or an exemption from registration under, as applicable, the Financial Instruments Exchange Act of Japan or any other applicable securities laws. No public offering of the Notes will take place in Japan.|