Mizuho Bank (Subsidiary issuer): OpCo USD senior bonds: The first issuance in 10+ years, overweight on 10yr

Research evidence excerpt

Mizuho Bank (Subsidiary issuer): OpCo USD senior bonds: The first issuance in 10+ years, overweight on 10yr

Mizuho Bank’s OpCo USD senior bonds

We initiate coverage in this report of Mizuho Bank’s OpCo USD senior bonds (Moody’s:

A1; S&P: A) issued in April 2026. Mizuho Bank is the core commercial bank subsidiary of

Mizuho Financial Group, and this was its first issuance of such bonds in over 10 years.

Current valuation

Mizuho Bank’s OpCo USD senior bonds comprise 3yr, 5yr, 10yr, and 20yr bonds. Due to

the very limited supply of 20-year bonds, we will assess their valuation separately from

3yr, 5yr, and 10-year bonds.

3yr, 5yr, and 10yr bonds

Exhibit 1 below shows valuations for OpCo USD senior bonds issued by Mizuho Bank,

USD senior bonds (TLAC bonds) issued by holding company Mizuho Financial Group, and

bonds issued by SMTB, which has the highest outstanding balance of OpCo USD senior

bonds among Japanese banks. We examine the validity of valuations for Mizuho Bank’s

3yr, 5yr, and 10yr bonds based on the following three points.

1. Spread differentials between OpCo senior bonds and HoldCo senior bonds

2. Comparison of Mizuho Bank’s bonds and SMTB’s bonds

3. Comparison of Mizuho Bank’s bonds and the USD senior bonds of Australia’s big

four banks

Exhibit 1: Mizuho Bank’s bonds are attractive in 10yr zone

Comparison of bonds at Mizuho Bank, Mizuho FG, and SMTB (horizontal axis: years until maturity/first call date; vertical axis: G-spread)

Mizuho BK Mizuho FG SMTB

1 2 3 4 5 6 7 8 9 10

Source: Bloomberg, BofA Global Research

BofA GLOBAL RESEARCH

1. Spread differentials between OpCo seniors and HoldCo seniors

First, spread differentials between the OpCo USD senior bonds of Mizuho Bank and the

HoldCo senior bonds of Mizuho Financial Group are mixed at around 20bp for the 3yr