Acquisitions · Banking (corporate loans)
Mizuho to buy RBS's North American corporate loan book
- Buyer
- Mizuho Bank (Tokyo)
- Target
- RBS North American corporate loan portfolio, Edinburgh, United Kingdom
- Value
- About $3.2B in drawn loans ($36.5B in commitments); the price roughly equals the drawn amounts
- Status
- Agreed on February 26, 2015; the loans were transferred in tranches during 2015.
- Date
- 2015-02-26
Mizuho Bank agreed to buy a portfolio of loans to about 200 corporate clients in the US and Canada from the Royal Bank of Scotland. The portfolio held about $36.5 billion in loan commitments, of which about $3.2 billion was drawn. The price was set at roughly the drawn amounts on each transfer date.
Why it matters
The purchase gave Mizuho lending ties to a large group of North American corporations in one step, as RBS pulled back from the region. It supported Mizuho's push to build a corporate and investment banking business in the US.
The portfolio
The clients are mainly large corporations in the US and Canada with high credit quality, served through RBS's North American wholesale business. Commitments transfer at the amounts outstanding on each transfer date. Mizuho expected the transfer to be substantially completed by the middle of its fiscal year 2015, subject to client consents.
Wider transfer
Besides the loans, the two banks said they were exploring the transfer of certain related derivatives and of some coverage banking, debt and loan capital markets and syndication capabilities. Mizuho Securities USA and Mizuho Capital Markets Corporation were also involved. Mizuho said the deal would speed up the growth of its corporate and investment banking business in North America.
Sources
Kakehashi M&A News home
