Mizuho Financial Group and Rakuten Bank Announce Strategic Capital and Business Alliance

Mizuho Financial Group (Mizuho FG) and Rakuten Bank have entered into a strategic capital and business alliance to establish a new credit creation model. This alliance involves Mizuho Bank acquiring corporate loans and other assets from Rakuten Bank, collaborating on payment and working capital needs for small corporate customers, and improving operational efficiency, including in the housing loan business. In the event of a crisis affecting Rakuten Bank's primary center, Mizuho Bank may provide temporary cash disbursement services. As part of the capital alliance, Mizuho Bank will receive 23,559,673 Class A shares of Rakuten Bank, making it a major shareholder with approximately 10.52% of the voting rights after conversion to common shares. This alliance, effective October 1, 2026, aims to enhance the corporate value of both Mizuho FG and Rakuten Bank by leveraging their respective strengths: Mizuho Bank's corporate client base and origination capabilities, and Rakuten Bank's retail customer support and digital banking expertise. The agreement includes provisions to maintain Mizuho Bank's voting ratio and preserve Rakuten Bank's management autonomy.