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Mizuho Plans Japan’s First Basel-III Compliant Bond, Fitch Says 

March 18, 2014
Tanya Angerer, Bloomberg

Mizuho Financial Group Inc. is considering selling Japan’s first Basel III-compliant bond as lenders in the Asia-Pacific region offer the most debt this quarter in 18 months.

Japan’s third-largest bank by market value is planning to issue a 10-year subordinated note in dollars, according to a person familiar with the matter who asked not to be identified because the details are private. It will be the nation’s first Basel III-compliant debt, according to a Fitch Ratings report today. The Asia-Pacific region’s lenders have offered $27.2 billion of dollar-denominated securities this year, the most since $37 billion was sold from July to September in 2012, according to data compiled by Bloomberg.

Global watchdogs led by the Basel Committee on Banking Supervision are seeking to bolster banks’ balance sheets after the financial crisis exposed inadequate buffers against losses. Yield premiums on dollar debentures for financial institutions in Asia have narrowed to levels seen before the collapse of Lehman Brothers Holdings Inc., with spreads at 225.99 basis points more than Treasuries, near the lowest since November 2007, according to a JPMorgan Chase & Co. index.

Read more: Bloomberg


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