Global Products Unit

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We aim to be a team of professionals offering optimal solutions by closely tracking changes in industry and society, demonstrating sophisticated expertise in each product area, and integrating global intragroup functions.

Basic policy

At the Global Products Unit, our activities are primarily divided into two areas: investment banking and transaction banking. In both areas, we offer a wide range of solutions.

We will continue fulfilling our corporate social responsibilities as a financial institution while supporting the strategies of in-house companies and the Mizuho group as a whole to overcome challenges faced by our clients and society. To this end, exercising optimal functions as a unified group, we will provide solutions founded on our sophisticated financial product expertise, and utilize our diverse insights to take measured risks when providing financing.

At the same time, we will continue devoting ourselves to maintaining and managing stable settlement infrastructure and to developing our personnel as part of forming a sustainable business base.

Strengths

  • Broad coverage, from investment banking to transaction banking, and sophisticated financial product expertise
  • Ability to provide solutions meeting the varied needs of a wide range of customers, including retail customers, corporate clients, and financial investors

 

External business environment
Risks and opportunities

Risks

  • Deterioration of credit due to intensifying geopolitical risk
  • Impacts on economic activity from the COVID-19 pandemic and global inflation
  • Threat of other industries expanding into finance

 

Opportunities

  • Acceleration of changes in societal trends, in connection to sustainability and digital transformation
  • Movement towards industry reorganization linked to strengthening of economic security and other factors
  • Greater demand for reviews of business portfolios and supply chains

 

Progress on key strategies

Providing effective solutions across banking, trust banking, securities, and other group companies

Together as a united group, we aim to provide optimal solutions tailored to our clients' needs, offering them the best support for initiatives based on their corporate and growth strategies. In addition to providing expertise leveraging the strengths of our banking, trust banking, securities, and other group companies, we are also expanding and improving coordination between the group companies in order to enhance our solutions for clients.

(Related materiality areas)

  • Industry development & innovation
  • Sound economic growth
  • Environment & society

 

Expanding our provision of services on a global basis through our expertise in products

Amidst growing uncertainty in the global economy, we are endeavoring to offer solutions that fully capture societal trends in order to continue providing support tailored to our clients' business environment. In investment banking, we are assisting clients with investing in various global assets, including infrastructure, real estate, and other businesses, and we are reinforcing our capabilities for meeting investor needs. In transaction banking, we are enhancing our provision of functions such as cash and foreign currency management on a global basis, in light of supply chain shifts and related factors. Further, we are continuing to develop professional personnel and advance expertise as a foundation for our solutions.

(Related materiality areas)

  • Industry development & innovation
  • Environment & society
  • Personnel

 

Providing stable, highly convenient settlement infrastructure

To continue supporting our clients' businesses well into the future, we are pursuing stable maintenance and operation of settlements infrastructure for transaction banking and looking to improve convenience.

We are engaged in ongoing initiatives to transition to ISO20022 for settlements with other banks and to upgrade our core IT system. In addition, to prevent further system failures, we are undertaking efforts to resolve system vulnerabilities, minimize impacts in the event of a failure, and enhance our business contingency plan. Beyond these, we are also moving forward on securing a stable talent pool and developing personnel who will lead us into the next era.

With a view towards the progress of digital transformation, changes in client needs, and improvements to operational productivity, we are strengthening our business foundations for the future through system development and ongoing refinement of our solutions for clients.

(Related materiality areas)

  • Sound economic growth
  • Personnel
  • Governance

Sustainability initiatives

With our product arrangement capabilities founded in a strong track record of underwriting of SDG bonds and arrangement of sustainability loans, we are keeping ahead of societal trends and proactively providing financing, consulting, and solutions in line with clients' sustainability strategies.

Initiatives for carbon neutrality are accelerating, and the push towards a low-carbon society is also expected to bring about more rapid business structure transformation and supply chain shifts among clients. Against this backdrop, the Global Products Unit is working as a cohesive team and coordinating with in-house companies to design and advance products contributing to social development, in the fields of transition and new technology in particular.

Highlights

Launch of Sustainable Supply Chain Finance (SSCF), first for a Japanese bank

Mizuho Bank became the first bank in Japan to offer SSCF, which includes a framework linking the financing rate to supplier sustainability performance.

SSCF offers funding incentives to middle-market and small- and medium-sized enterprises to address environmental and social issues, with the goal of encouraging achievement of CO2 emission reduction targets and promoting environmental and social initiatives across the entire supply chain.

This product enables us to support all of our clients’ sustainability initiatives over the medium to long term and positively contribute to building a stronger, more stable, and more sustainable supply chain.

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Arrangement of project finance for a floating offshore wind farm project in France

imageLeveraging our extensive insights and track record accumulated over many years, Mizuho Bank has supported development of renewable energy and technological innovation around the world.

In May 2022, we signed financing agreements as one of the mandated lead arrangers and lenders on a project finance deal for the construction, maintenance, and operation of a floating offshore wind farm project, the Eoliennes Flottantes du Golfe du Lion Project, in France.

The deal features an innovative finance structure in that it involves a non-recourse loan for a first-of-its-kind floating offshore wind farm. This may become a precedent for non-recourse finance to similar projects in the future.

Going forward, we will continue promoting action to address climate change and supporting the transition to a low-carbon society.

Our sustainability-related initiatives

We have developed and are providing a wide range of solutions for sustainability-related needs. For example, Mizuho Securities has facilitated the issuance of Japan's first blue bond, which raises capital for marine conservation. Also, Mizuho Bank has launched a green real estate non-recourse loan product for clients managing real estate funds and similar investments. Going forward, we will continue with our sustainability action and further strengthen our initiatives towards achieving a sustainable society.

Awarded for our transaction banking

In August 2022, Mizuho Bank received the Best Asian International Transaction Bank in Asia Pacific award in The Asian Banker's Transaction Finance Awards 2022. The Asian Banker is a media company specializing in finance in Asia, and Mizuho Bank was recognized with an award for the fourth consecutive year. The award is a testament to our ongoing commitment to supporting our clients' sustainable growth strategies.

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