Mizuho Bank, part of the Mizuho Financial Group, will launch a comprehensive securitisation service for midsize companies, aiming to increase commission income by expanding securitisation to include the accounts receivables of smaller businesses, according to the Nihon Keizai Shimbun.
The service enables Mizhuo to bundle claims and thereby secure capital at a lower cost. The need for securitisation services is growing among small- and medium-sized firms (SMEs), which are often seen as less creditworthy than large companies, the report said.
Okinawa's Kanehide group will be the first to use the service. By the end of the month, Mizuho Bank will acquire up to 8 bn yen (US$74m) in accounts receivables of six group firms through a special purpose company. It will then sell commercial paper backed by the receivables to investors.
