We hereby announce that the Board of Directors of Mizuho Financial Group, Inc. ("MHFG") has resolved today to entrust the below-mentioned properties including the head office of Mizuho Bank, Ltd. ("MHBK"), a subsidiary of MHFG, and to transfer the Property Trust Beneficiary Interest related thereto.
1. Reason for transfer
These transactions, carried out as part of our restructuring efforts, will help to improve our financial strength through reducing the unrealized losses on land and overall risk from exposure to real estate prices.
2. Subject properties
(1) Head office of MHBK
| Location | 1-1-5, Uchisaiwaicho, Chiyoda-ku, Tokyo (Land: 13,269.46m2, Building: 135,194.75 m2) |
| Transfer price | JPY 105.0 billion(book value: JPY 146.2 billion) |
| Current status | Mainly used as the Head Office of MHBK |
(2) Otemachi Head Office of MHBK*
| Location | 1-5-5, Otemachi, Chiyoda-ku, Tokyo (Land: 8,495.06m2, Building: 89,176.93 m2) |
| Transfer price | JPY 112.0 billion(book value: JPY 132.4 billion) |
| Current status | Mainly used as the Otemachi Head Office and Tokyo Chuo branch of MHBK |
- *Including comparted ownership of neighboring Otemachi Financial Center Building.
Even after these transfers, MHBK will continue to occupy the subject properties under sublease agreements.
Location of MHFG will remain unchanged.
3. Outline of transferee
(1) Head office of MHBK
| Name | First U, Ltd. |
| Head Office Location | 1-6-1, Roppongi, Minato-ku, Tokyo |
| Representative | Ryo Yano, Director |
| Paid-in Capital | JPY 3 million (as of February 20, 2004) |
| Shareholder | First U Holding, Ltd. (100% shareholder as of February 20, 2004) |
| Principal Business | Purchase, holding and sale of trust beneficiary certificate |
| Relationship with MHFG | None |
(2) Otemachi Head Office of MHBK
| Name | Tokyo Prime Stage Y.K. |
| Head Office Location | Mitsuiseimei-jimbocho Bldg. 11F. 1-11, Kandajimbo-cho, Chiyoda-ku, Tokyo |
| Representative | Tomoyoshi Horikawa, Director |
| Paid-in Capital | JPY 3 million (as of February 20, 2004) |
| Shareholder | Tokyo SPC Holdings, Ltd. (100% shareholders as of February 20, 2004)
(In substance, Tokyo Tatemono Co., Ltd will make majority of financial contribution.) |
| Principal Business | Purchase, holding and sale of trust beneficiary certificate |
| Relationship with MHFG | None |
4. Schedule
(1) Head Office of MHBK
| Signing of contract | February 24, 2004 |
| Scheduled transfer date | March 12, 2004 |
(2) Otemachi Head Office of MHBK
| Signing of contract | February 27, 2004 |
| Scheduled transfer date | February 27, 2004 |
5. Effect of this development on our Earnings Estimates
There is no change to our previously announced earnings estimates for the current fiscal year, despite the losses incurred by these transactions.
