Mizuho: Japan’s Third Bank to Sell Post-CS AT1 Bonds

Japan’s Mizuho has become the nation’s third lender to sell AT1 bonds following the highly scrutinized Credit Suisse wipeout.

Mizuho Financial Group is planning a yen-denominated two-part AT1 note, according to underwriter Mizuho Securities. The note is expected to be priced as early as July but the issuance size has yet to be determined.

According to a spokesperson at Mizuho, the bank plans to use the AT1 bond proceeds as working capital.  

Third in Japan

Mizuho is the third major Japanese bank to sell AT1 bonds following Credit Suisse's 17 billion Swiss franc ($17.8 billion) wipeout as part of the UBS takeover. Sumitomo Mitsui Financial Group became the first major lender to sell the notes after the write-down while Mitsubishi UFJ Financial Group is also marketing a deal.

Outside of Japan, there are also other global lenders resuming such bond sales including Australia’s Commonwealth Bank which aims to raise at least A$750 million ($500 million) via an AT1 hybrid security issue.