Japan’s Mizuho Financial Group Inc (8411. T) sees a pickup in overseas lending after a slowdown last year in the United States, where a recently enacted corporate tax cut is widely expected to spur mergers and acquisitions (M&As).
TOKYO (Reuters) — Japan’s Mizuho Financial Group Inc ( 8411. T) sees a pickup in overseas lending after a slowdown last year in the United States, where a recently enacted corporate tax cut is widely expected to spur mergers and acquisitions (M&As).
Major Japanese banks are placing increased emphasis on lending abroad, particularly in busy M&A markets such as the U. S., as they seek more means of growth while their domestic lending businesses suffer persistently low interest rates.
“We expect companies that become cash-rich from the tax cut to accelerate acquisitions,” said Akira Sugano, head of overseas business at Japan’s third-biggest bank by market value. “There are actually companies planning such moves among our clients.”
Mizuho is already working with U. S. clients to provide finance for billion-dollar deals, Sugano said.
Mizuho has made acquisition finance for blue-chip firms one of the core businesses of its overseas operations. It plans to provide bridge loans — or short-term funds — to firms needing to arrange large finance quickly and secretly, after which it aims to win business when clients switch to more permanent funding such as through sales of bonds and shares.
