Mizuho Bank will increase its long-term prime lending rate by 0.15 percentage point to 3.4 percent. The new rate takes effect this Thursday. This benchmark for large corporate loans reaches its highest level in approximately 30 years. The bank cited rising long-term interest rates in Japan as the primary driver for the adjustment.
Separately, Moody's Ratings assigned a Ba1 rating to Mizuho Financial Group's $1 billion issuance of Additional Tier 1 (AT1) securities. These perpetual, non-cumulative, and subordinated notes feature a fixed rate of 7.050% until December 2036. The interest rate will reset every five years thereafter. Mizuho intends to use the proceeds for a perpetual subordinated loan to Mizuho Bank for general corporate purposes.