Global Products Unit

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We aim to fortify our sophisticated expertise in each product area as a team of specialists as we promptly ascertain changing trends in the business environment and economic activities and integrate our global operations and intragroup functions to offer optimal solutions.

Basic policy

At the Global Products Unit, our activities are primarily divided into two areas: investment banking and transaction banking. In the field of investment banking, we offer financing services through the capital markets—such as syndicated loans and corporate bond issuance—and we also offer intermediary, advisory, and finance arrangement services in the M&A and real estate fields. In the field of transaction banking, we offer settlement services in Japan and internationally, funds management, as well as foreign exchange and other trade–related financial services.

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, as a unified group, we will provide solutions founded on our sophisticated financial product expertise, and utilize that expertise to take measured risks when providing financing.

In addition, by continually reviewing the allocation of corporate resources based on the characteristics of each financial product, and through digitalization, we will work to improve operational efficiency and expand new business areas, thereby enhancing productivity and broadening business opportunities from a medium– to long–term perspective.

Business environment and challenges

The business environment that our clients are faced with is shifting at a rapid pace as uncertainty rises in the global economy and social conditions amid the continuing COVID–19 pandemic. In particular, we recognize that trends such as transforming business structures to realize sustainable business and the reconstruction of global supply chains are bringing about changes in clients' business itself, and becoming a strong and intensifying undercurrent.

At the Global Products Unit, we aim to continue providing ideal solutions for client needs by combining our sophisticated expertise in each business field with the various functions that Mizuho provides.

Specifically, as we work to realize sustainable businesses, we will continue to offer our expertise and services and provide support for business fields including M&A and real estate, and securitization in order to supply the funding necessary to transform business structures for decarbonization and expand new, growing business areas through financial advisory and other services.

In addition, in response to the trend of reconstruction of supply chains, the Global Products Unit will also continue working closely with offices in Japan and around the world to address client needs.

Progress on key strategies

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

Together as a united group we are aiming to provide optimal, situation–specific solutions to offer the best support for initiatives based on clients' corporate and growth strategies. In addition to offering our expertise leveraging the strengths of our banking, trust banking, securities, and other group companies, by further strengthening coordination between these entities we are continuing to work towards providing clients with more seamless solutions.

Related key sustainability areas (materiality)

  • Industry development & innovation
  • Environmental considerations

 

Enhancing our global operating framework and honing financial product expertise

As our clients accelerate their global operations, we are addressing these needs by enhancing Mizuho's operating framework on a global basis through close coordination between offices around the world. We are also striving for stable operations by gradually upgrading infrastructure which forms the foundation from which we provide our solutions.

For example, in the field of transaction banking, we are working to enhance financial management, foreign exchange control, and other functions, along with strengthening our operational capabilities.

We are also continuously working to hone our expertise as an organization by strategically cultivating the pool of professional talent in each product field.

Related key sustainability areas (materiality)

  • Industry development & innovation
  • Human capital

 

Expansion into new business areas

In order to meet the increasingly diverse and complex needs of our clients, Mizuho must create and provide solutions beyond those offered in our existing line–up, taking into account the changing trends in society.

In addition to our financial product expertise, we are working to expand business from a long–term perspective by developing and enhancing products based on the growing awareness of sustainability and advances in digitalization.

Related key sustainability areas (materiality)

  • Industry development & innovation
  • Environmental considerations
  • Sound economic growth

 

Principal accomplishments in investment banking

  FY2020 results
Syndicated loans1 No. 1
Japan publicly offered bonds2 No. 1
ABS lead underwriter3 No. 1
  1. Amount basis, bookrunner basis
  2. Underwriting amount basis (excluding our own bonds)
  3. Amount basis, asset–backed securities

 

Principal accomplishments in transaction banking

  FY2020 results
Cash management services4 Cash Management Survey No. 1 (5 years in a row)
Custody5 Custody survey No. 1 (10 years in a row)
  1. CMS survey rankings (in the Japanese market) in Euromoney magazine
  2. Holding and managing securities for securities investments.
    Custody bank survey rankings (in the Japanese market) in Global Custodian magazine

 

Highlights

Providing solutions amid the COVID–19 pandemic

1. Contributing to the stabilization of client companies through finance

Amid restrictions on economic activities as a result of the COVID–19 pandemic, we at Mizuho have appropriately responded to financial support requests from our clients.

While taking into consideration matters such as clients' unique situations and the environmental changes that affect their businesses, we have provided funding support in the form of syndicated loans and corporate bonds, and responded agilely to their needs, including securing liquidity on hand and transforming their business structures.

We will continue our efforts to respond to client needs in a timely manner.

Total publicly offered bonds (Japan)

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Source: Mizuho Securities FY2020 financial results available on the Mizuho Securities website

Syndicated loans

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Source: Mizuho Financial Group FY2020 financial results available on the Mizuho Financial Group website

2. Supporting the digitalization of clients' general meeting of shareholders

imageMizuho Trust & Banking has developed "Smart Benefits", a service through which
shareholders can apply for benefits via a smartphone.

In addition to enhancing convenience for shareholders, this service enables the issuing companies to reduce mailing and aggregation costs, and devise additional reduction of mailing costs through the use of digital gifts.

We will continue our efforts to digitalize shareholder–related services and to provide tools for communication with shareholders.

Arrangement of transition–linked loan

Mizuho Bank arranged the first transition–linked loan in Japan, provided to Kawasaki Kisen, with Mizuho Securities and Mizuho Bank serving as the transition structuring agents. Transition–linked loans aim to support the transition initiatives corporations implement in order to reduce carbon emissions and work toward achieving a low–carbon society. This particular transition–linked loan is one of Japan's largest ESG loans. At Mizuho, we will continue to draw on our expertise as a financial services group to proactively provide financing support, advice, and solutions for strengthening and shifting clients' businesses toward decarbonization.

Launch of Mizuho Digital Accounting

Mizuho Bank has collaborated with SmileWorks and Infordio to launch Mizuho Digital Accounting, an AI–OCR–based* online service aimed at helping companies streamline their payment operations, beginning with processing of invoices. The service's unique feature is that it can convert the information on invoices into text data and then automatically generate entry data or transfers, allowing users to streamline their invoice processing and facilitate remote work. Going forward, Mizuho will continue to proactively work with other companies outside our group and meet the needs of customers in the new era by providing solutions with added value beyond the boundaries of finance.

* AI–OCR: A technology combining optical character recognition (OCR) for converting text into data with AI.

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