Tokyo-based Mizuho Securities Co. Ltd. lost roles in two sovereign bond issues in the Gulf region amid ongoing tension between Qatar and neighboring countries, Reuters reported April 18, citing four banking sources.
The Mizuho Financial Group Inc. unit was initially part of Saudi Arabia's US$11 billion bond issue and Qatar's US$12 billion issue. The deals would have potentially booked the lender US$1.5 million to US$2 million in fees.
However, Saudi Arabia removed Mizuho Securities from the roster after it failed to disclose that it was also running in the Qatar deal, two of the sources said. The bank also confirmed that it withdrew from the Qatar issue, without providing further details.
A spokesperson for Saudi Arabia's finance ministry said it appoints banks based on their capability, commitments and availability to serve the kingdom. A Qatari official declined to comment on Mizuho Securities' decision to withdraw from the deal.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt had launched a boycott of Qatar in 2017 due to the nation's alleged terrorism financing.
