OpCo USD senior bonds: The first issuance in 10+ years, overweight on 10yr

Research evidence excerpt

OpCo USD senior bonds: The first issuance in 10+ years, overweight on 10yr

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Mizuho Bank (Subsidiary issuer)

OpCo USD senior bonds: The first issuance

in 10+ years, overweight on 10yr

Initial Opinion - Credit

23 June 2026

Mizuho Bank is core bank subsidiary of Mizuho Financial Credit

Group Japan

Mizuho Bank is a wholly owned subsidiary and core commercial bank of holding company Banks

Mizuho Financial Group. Mizuho Bank had total parent assets of ¥251.2tn as of end- Yusuke Ikeda

March 2026, accounting for about 83% of Mizuho Financial Group’s total consolidated Research Analyst

assets. Mizuho Bank generated parent net profits of ¥822.4bn in FY3/26, accounting for BofAS+81 3 6225Japan7712

about 66% of Mizuho Financial Group’s consolidated net profits. Accordingly, Mizuho yusuke.ikeda@bofa.com

Bank has a core presence in the Mizuho Financial Group in terms of both the balance

sheet and income statement. Mizuho Bank’s subsidiaries comprise Mizuho Americas

LLC, a holding company that operates the US business, and the highly profitable Mizuho

Securities USA LLC as a subsidiary of Mizuho Americas LLC. Mizuho Bank had issued

USD bonds before Mizuho Financial Group starting issuing USD TLAC bonds in April

2016, and Mizuho Bank’s bond issuance in April 2026 was the first in over 10 years.

OpCo USD 3yr, 5yr, and 10yr senior bonds

We examine the validity of valuations for the 3yr, 5yr, and 10yr bonds issued by Mizuho

Bank from three perspectives: (1) spread differentials between operating company

(OpCo) senior bonds and holding company (HoldCo) senior bonds; (2) comparison with

Sumitomo Mitsui Trust Bank (SMTB) bonds; and (3) comparison with Australia’s big four

bank bonds. Of these, (2) is positioned as the upper bound for Mizuho Bank bond