Global Products Unit
We aim to leverage our sophisticated expertise as a team of specialists as we continue offering optimal solutions that are aligned with client needs.
At the Global Products Unit (GPU), our activities are primarily divided into two areas, investment banking and transaction banking, and we provide a wide range of solutions for our clients including M&A, real estate, and project finance, as well as settlement in Japan and globally, cash management, and transfer agency services.
By drawing on the sophisticated expertise of the banking, trust banking, and securities functions of the group, we will continue addressing the needs of clients and investors, while supporting the strategies of in–house companies and the Mizuho group as a whole to increase our stable earnings power.
In addition, we are aiming to improve productivity and efficiency by endeavoring to achieve optimal allocation of corporate resources and review stock variables (in terms of stock and flow) without being constrained by established conventions.
Business environment and challenges
As uncertainty in the global economy rises, price fluctuation risk continues to increase for stocks, bonds, real estate, and commodities. Also, the business environment that our clients are faced with is shifting at a rapid pace, with Fintech and other forms of technological innovation bringing new developments on an almost daily basis.
Confronted with this business environment, at the GPU we are focusing our attention on leveraging our sophisticated expertise as we continue offering optimal solutions that are aligned with client needs.
Specifically, by utilizing our financial product expertise to take measured risks, and by further advancing the originate–to–distribute model taking the perspectives of investors into account, we will support the financial product aspects of Mizuho’s strategy, and contribute to solutions for issues that are faced by clients and society.
Progress on key strategies
Providing effective solutions across banking, trust banking, securities, and other group companies
In order to provide the best support for value chains that create added value and contribute to increased corporate value for clients, we are further deepening our collaboration with financial product departments throughout the banking, trust banking, and securities entities and our other group companies to continue to provide solutions as a united group.
For example, we are supporting our clients in the medium to long term by developing a deep understanding of the business strategies of our corporate clients based on each company's development stage, from discussions on their growth strategy to financial and management strategies and exit strategies, and providing optimal solutions drawing on the strengths of the entire group.
Enhancing our global operating framework and honing financial product expertise
Against the backdrop of Japan's aging population and declining birthrate, and the growing presence of Asia as a global player, clients are accelerating their global operations, and we are addressing these needs by enhancing Mizuho's services on a global basis.
We are boosting collaboration between offices to support our clients, especially for cash management, settlements, and other transaction banking services, as well as services in the field of project finance.
Also, in order to bolster our capacity to provide solutions to our clients, we are continuing to strategically develop a larger pool of specialists.
Expansion into new business areas
In order to address client needs, which are diversifying and becoming more complex, and to support clients in resolving issues, Mizuho must create and provide solutions beyond those offered in our existing financial product line–up.
Our unit is making use of digital technologies, which are advancing day by day, and expanding business in new fields to capitalize on recent trends.
Principal accomplishments in investment banking
|FY2019 H1 results|
|Syndicated loans||No. 11|
|Japan publicly offered bonds (Industrial bonds & electric power bonds)||No. 12|
|ABS lead underwriter||No. 13|
|Project finance (Japan)||No. 14|
- Amount basis, bookrunner basis
- Underwriting amount basis, excluding our own bonds
- Amount basis, asset–backed securities
- Amount basis, bookrunner basis
Principal accomplishments in transaction banking
|FY2019 H1 results|
|Trade finance||"Best trade finance bank in Asia Pacific"5|
|Transaction banking (Asia)||"Best Asian International Transaction Bank in Asia Pacific"6|
|Custody||Custody survey No. 1 (9 years in a row)7
Sub–custody survey No. 1 (14 years in a row)7
- Global Trade Review awarded Mizuho the "Best trade finance bank in Asia Pacific" award.
- Financial media company The Asian Banker recognized Mizuho with the award in its Transaction Awards 2019.
- Holding and managing securities for securities investments.
Custody bank survey rankings (in the Japanese market) in Global Custodian magazine.
Awards in transaction banking
Among the various solutions Mizuho provided to clients in the field of transaction banking in FY2018, our initiatives in trade finance and custody were particularly highly evaluated, and we received awards from industry magazines. In trade finance, Mizuho Bank won the award for best trade finance bank in East Asia and the Pacific among Global Trade Review's choice of Leaders in Trade. Our sophisticated product development and dedicated service, as well as customized product offerings addressing the needs of major players throughout the region, were critical factors in receiving this prestigious regional award for the third consecutive year.
In custody, at the Global Custodian's Leaders in Custody Awards hosted in March 2019, Mizuho Bank was awarded the Asia–Pacific region Best Relationship Management and Client Service Award, as well as the Continued Excellence Award for Asia–Pacific, a special honor presented to banks in each region that have consistently outperformed in Global Custodian surveys, as a way of commemorating the 30th anniversary of the Leaders in Custody awards. Mizuho Trust & Banking (Luxembourg) was also honored with the Best Global Custodian Network Team Award.
We will strive to improve the standard of our services, supporting the growth strategies of clients who are expanding globally, and enhance our asset management support for investors.
Establishment of JTC Holdings
In October 2018, Trust & Custody Services Bank (TCSB) and Japan Trustee Services Bank (JTSB) established JTC Holdings (JTCHD) through a joint share transfer.
The purpose of this integration is to realize more stable and higher quality operations and to strengthen IT system development capabilities by concentrating TCSB's and JTSB's corporate resources and expertise, and seeking to leverage the benefits of scale, thus contributing to the further growth of the domestic securities settlement market.
Together, JTCHD, JTSB, and TCSB form an elite Japanese financial group specializing in asset administration services, with approximately JPY700 trillion in assets under custody (including entrusted assets of approximately JPY400 trillion).
These entities will continue adapting to changing client needs and providing optimal solutions based on our sophisticated expertise.