TOKYO -- Mizuho Bank is joining JPMorgan Chase and Wells Fargo in financing Actavis' purchase of fellow U.S. drugmaker Allergan, a sign of Japanese lenders' rising prominence in the deals business.
The three banks will provide a $45 billion bridge loan for the $66 billion transaction.
Japanese banks have almost always taken part in financing big U.S. corporate acquisitions only after their American peers have arranged bridge lending. This time, Mizuho is getting in on the deal from the interim financing stage and is expected to receive higher fees as a result.
Actavis will eventually roll over most of the short-term loan into permanent financing, which will include debt and equity. Mizuho is looking to underwrite those securities sales through affiliates.
Japanese banks are trying to augment their meager domestic profits by earning more overseas. Mizuho has been marketing itself to 120 or so major multinationals in hopes of landing business like the Actavis loan.