Mizuho Bank, a wholly-owned subsidiary of Mizuho Financial Group, and the Royal Bank of Scotland have reached a definitive agreement for the acquisition by Mizuho Bank of a credit portfolio which, as of December 31, 2014, was made up of approximately $36.5bn in loan commitments, including $3.2bn of drawn assets.
The amount of commitments to be transferred will be the actual outstanding commitment amounts on the date each commitment is transferred, and the amount paid will be approximately equivalent to the aggregate of the drawn loan amounts on such dates.
The portfolio consists of approximately 200 leading U.S. and Canadian clients, principally high-quality investment grade corporations, in the wholesale market in North America.
In conjunction with the transaction, Mizuho, including its subsidiaries, Mizuho Securities USA and Mizuho Capital Markets Corporation, are also exploring the transfer of certain associated derivatives, and the transition of select coverage banking, debt and loan capital markets, syndicate, and associated capabilities related to the portfolio.
The loan portfolio purchase and expected acquisition of select related capabilities will significantly expand the depth and breadth of Mizuho’s client relationships and product offerings in North America, building on the solid foundation established over the last several years as a more dynamic corporate and investment banking provider in the Americas.
Mizuho will continue to coordinate with RBS to ensure an orderly and seamless transition of client loan commitments. The transfer of assets is expected to be completed in substance by mid FY2015, subject to any necessary consents.
Yasuhiro Sato, President and Group CEO, Mizuho Financial Group, said, 'This transformational transaction further accelerates the expansion of Mizuho’s corporate and investment banking activities in North America, and is consistent with our long-term commitment to the North America market and to providing clients with outstanding service and support. Furthermore, both new and existing clients will continue to benefit from Mizuho’s leading global franchise with particular strength in Asia and Japan'.