By Cristal Cody
Tupelo, Miss., July 6 – Mizuho Financial Group, Inc. priced $2.5 billion of senior notes (A1/A-) in three registered tranches on Monday in the first diversity and inclusion bond offering by a Japanese bank, according to a market source.
A $400 million tranche of floating-rate notes due July 10, 2024 priced at par to yield Libor plus 99 basis points.
Mizuho sold $1.1 billion of 1.241% four-year fixed-to-floating rate notes at par to yield a spread of Treasuries plus 105 bps.
Initial price talk was at the Treasuries plus 130 bps area.
The rate on the notes will reset to a floating rate of Libor plus 99 bps after the fixed-rate period.
A $1 billion offering of 2.201% fixed-to-floating rate notes due July 10, 2031 priced at par to yield a Treasuries plus 152 bps spread.
The 11-year notes were initially guided to print at the Treasuries plus 180 bps area.
The rate will convert to Libor plus 151 bps after the fixed-rate period.
Mizuho Securities USA Inc. and J.P. Morgan Securities LLC were the active bookrunners. Passive bookrunners were BofA Securities, Inc. and Goldman Sachs & Co. LLC.
Proceeds will be used to make loans that qualify as internal TLAC to Mizuho Bank, which will use the proceeds for general corporate purposes.
Mizuho Financial Group is a bank holding company based in Tokyo.
| Issuer: | Mizuho Financial Group, Inc.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Mizuho Securities USA Inc. and J.P. Morgan Securities LLC (active); BofA Securities, Inc. and Goldman Sachs & Co. LLC (passive)
|
| Trade date: | July 6
|
| Settlement date: | July 10
|
| Ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Four-year floaters
|
| Amount: | $400 million
|
| Description: | Floating-rate notes
|
| Maturity: | July 10, 2024
|
| Coupon: | Libor plus 99 bps
|
| Price: | Par
|
| Yield: | Libor plus 99 bps
|
| Call feature: | July 10, 2023
|
|
|
| Four-year fixed-to-floaters
|
| Amount: | $1.1 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | July 10, 2024
|
| Coupon: | 1.241%; resets after fixed-rate period to Libor plus 99 bps
|
| Price: | Par
|
| Yield: | 1.241%
|
| Spread: | Treasuries plus 105 bps
|
| Call feature: | July 10, 2023
|
| Price guidance: | Treasuries plus 130 bps area
|
|
|
| 11-year fixed-to-floaters
|
| Amount: | $1 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | July 10, 2031
|
| Coupon: | 2.201%; resets after fixed-rate period to Libor plus 151 bps
|
| Price: | Par
|
| Yield: | 2.201%
|
| Spread: | Treasuries plus 152 bps
|
| Call feature: | July 10, 2030
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
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