Mizuho announces MoU with Saudi Arabia’s PIF to advance capital market initiatives

Mizuho Bank and Mizuho International have signed a memorandum of understanding (MoU) with the Public Investment Fund (PIF), the Saudi sovereign wealth fund, to work together to further advance capital market flows into Saudi Arabia.

Since the opening of Mizuho Saudi Arabia Company in November 2009, Mizuho has been providing a full range of financial and advisory services, including diversification of funding bases and advice on decarbonization and transition in Saudi Arabia, as the first Japanese bank to enter the country.

Through this MoU, Mizuho will facilitate deeper access to Japanese and Asian capital markets and other global centers, diversify sources of capital, and invest in PIF’s human capital to foster cooperation in finance, investment, and sustainable development.

For PIF, the MoU aligns with its mission to invest actively over the long term to maximize sustainable returns, serve as an investment partner of choice for global opportunities, and support the economic development and diversification of the Saudi economy.

In addition, Mizuho Financial Group announced a memorandum of understanding (MoU) with Saudi Arabia’s Public Investment Fund (PIF) to potentially launch an exchange traded fund (ETF) in Japan investing in the Saudi Arabian equity market.

Under the MoU, Asset Management One is planning to launch an ETF in Japan investing in the Saudi equity market. As a result of Saudi Vision 2030, the Saudi financial market has undergone a significant transformation and experienced rapid growth. The ETF would provide various investors with access to one of the fastest-growing markets in the world.

PIF plays a critical role in Saudi Vision 2030 and has implemented a series of measures to attract foreign investment into the Saudi capital market. As part of the partnership, PIF is expected to become an anchor investor of the ETF together with Mizuho Bank.

It is expected that Mizuho Securities, Okasan Securities, and Toyo Securities will join as authorized participants and Optiver will act as a market maker for the ETF.

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