Corporate & Institutional Company

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Demonstrating our intrinsic worth as a value co‐creation partner and establishing a reputation as the most trusted bank in the corporate & institutional sector by supporting clients with solutions for challenges they face and enhancing their corporate value.

Basic policy

In the current uncertain and rapidly changing business environment, we support our clients in identifying actual issues and making strategy-level decisions through repeated, in-depth talks on their myriad and increasingly complex business challenges. In addition, in the strategy execution phase, the entire Mizuho group provides optimal solutions by drawing on our industry and products knowledge, our measured risk-taking capabilities, and our consulting capabilities that effectively combine these elements. Through comprehensive support for the strategic management of Japan's leading large corporations, financial institutions, and public sector businesses, we are aiming to contribute to the sustainable growth and development of industry, the economy, and society.

Business environment and challenges

As the impact of the COVID-19 pandemic becomes prolonged, in addition to significant changes to the business environment faced by clients, the transformation of industry structures is also proceeding at an accelerating pace. The pursuit of sustainability is another irreversible structural change, and is becoming a key business challenge for clients as well. Under this business environment, we will steadily address needs for funding support and other forms of financing through appropriate credit management based on the strong client relationships that we have cultivated thus far. Additionally, we recognize the importance of accurately understanding the major trends of structural changes in society and industry, and of further demonstrating our role as a partner co-creating value with our clients, not only through lending, but also through efforts such as joint investment and business tie-ups in fields other than finance, in order to support the sustainable development of our clients.

Trends in performance

In fiscal 2020 the downside impact of the COVID-19 pandemic was less severe than we had estimated at the beginning of the fiscal year, and by appropriately responding to client requests for financing support and capital base expansion needs we achieved a new all-time-high for profitability since the launch of our in-house company system. In fiscal 2021, despite a decline in Gross Profits year-on-year, we are maintaining a high target of JPY270 billion for Net Business Profits in part due to the cost-reduction effect of the structural reforms.

  1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
  2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

Progress on key strategies

Strengthening approaches to sustainability

As we conduct in-depth engagement with a focus on sustainability, we aim to generate business in a wide range of fields, not only in terms of finance, but also by working to resolve challenges faced by clients, industries, and society as a whole.

In particular, as priority areas we will strongly emphasize responding to client needs for asset rebalancing in connection with business portfolio reviews, supporting the establishment of long-term business plans for decarbonization, and transition finance.

Related key sustainability areas (materiality) 

  • Sound economic growth
  • Environmental considerations

 

Enhancing sector strategies

In May of 2021, we revised our operational framework to integrate our banking and securities functions with the launch of the industry group (IG) system, and built a structure under which the head of each IG takes the lead in proposing, promoting, and executing sector strategy. In order to enable the prompt detection of rapidly changing industry trends, and to ensure that corporate resources are invested both efficiently and in a way that opportunities are not lost, we aim to create a continuous deal origination structure under which IG heads flexibly allocate and reallocate corporate resources and promote the training and development of specialist personnel wellversed in each sector.

Related key sustainability areas (materiality) 

  • Industry development & innovation

 

Rebalancing corporate resources

As the finalization of the new Basel standards is on the horizon, we are working to build a portfolio that realizes appropriate risk and return. Cross-shareholdings are a key topic for the Corporate & Institutional Company, and in addition to continuing to gradually reduce such holdings, we will take steps to minimize our assets in low-profitability areas and invest instead in, for example, more profitable financial products.

Related key sustainability areas (materiality) 

  • Corporate governance

 

Total equity underwriting worldwide (rank)

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Domestic straight bonds (underwriting amount) (rank)

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M&A amount (deals related to Japanese companies) (rank)

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Highlights

Supporting the first sustainability-linked bond issuance in Japan

ImagesMizuho arranged the issuance of Japan's first sustainability-linked bonds (SLBs) for Hulic, which were issued for the purpose of widely disseminating the company's sustainability initiatives based on their long-term environmental vision. SLBs are a new type of SDG bond in which the conditions of the bond are linked to the company's achievement of sustainability performance targets (targets based on the issuer's corporate strategy), and this corporate bond has been recognized by the Ministry of the Environment as the first model case.

Revision of our operational framework

In order to provide even more sophisticated financial services in response to clients' increasingly complex business challenges, which include sustainability, digital transformation, and transformation of business beyond conventional business models, we conducted a fundamental revision of our operational framework. Our five industry groups, restructured to integrate banking and securities and classified by industry category, and two regional groups, restructured based on region and industry category, will provide clients with optimal solutions.

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