Finance

With regard to wind power, a maximum of 40% of the power generated can be converted to electric energy, demonstrating relatively high efficiency compared with other renewable energies. In fiscal 2010, Japan introduced a target of 3 million kilowatts in wind power generation and wind power has been promoted aggressively. Eurus Energy Holdings Corporation, Japan's largest wind–power generation business, has been promoting the Noheji Wind Farm plan in Aomori. The farm is the largest wind power generation facility in Japan, generating a total of 50,000 kilowatts.

In 2009, MHCB prepared project financing for the Noheji Wind Farm of Eurus Energy Holdings Corporation. Since its completion in February 2008, the wind power generation facility has been operating successfully.

The total power volume and RPS credits^* generated by the farm will be supplied to Tohoku–Electric Power Co., Inc., for 17 years.

• *The RPS (Renewable Portfolio Standard) system provides environmental credits for the dissemination and promotion of new energies that are granted for power generation by facilities approved under the Special Measures Law Concerning the Use of New Energy by Electric Utilities ("RPS Law")

To actively provide financial support to companies proactively addressing environmental problems, MHBK began in December 2009 to offer "Mizuho Eco–Assist (Interest Subsidy Delivery Project developed by Ministry of Environment)," which supports funding for customers who adopt a positive approach to environmental issues.

When certain conditions^* are met, "Mizuho Eco–Assist" loans are provided and interest rates reduced in accordance with environmental ratings assigned by MHBK. In addition, companies receiving these loans may also qualify for a maximum annual interest–rate subsidy of 2% for up to three years from the Japan Environment Association.

• *1. The environmental rating assigned by MHBK equals or exceeds a certain level.
  2. The loan applicant pledges a 6% improvement in CO2 emissions intensity within three years or a 6% reduction in CO2 emissions within three years.
  3. The loan applicant discloses or reports CO2 emissions at the company level and reports can be submitted to MHBK.

In February 2011, MHBK provided a "Mizuho Eco–Assist" loan to Kyodo Printing Co. Ltd. to finance its construction of new production facilities for its expansion in its pharmaceutical and industrial materials businesses. Kyodo Printing is using the financing it received to improve production efficiency by renovating and consolidating production facilities and for purposes like equipping new production facilities with exterior walls incorporating high–efficiency insulation, and with high–efficiency lighting and air conditioning, which promise benefits from high energy efficiency.

New building at Kyodo Printing Co. Ltd.'s Moriya Plant

In March 2011, MHBK provided Teishin–kai, a medical corporation operating four healthcare facilities in Ibaraki Prefecture, with a "Mizuho Eco–Assist" loan to finance the construction of an addition to its Nishiyamado–Keiwa Hospital. Teishin–kai is using the loan funds to build a highly energy–efficient facility that, by being all electric and incorporating Eco–Ice and EcoCute technologies, is expected to improve CO2 emissions intensity by at least 6% within three years.

New building of Nishiyamado–keiwa Hospital

To provide financial support to companies practicing environmentally conscious management, MHBK began offering "Mizuho Eco Private Placement" in January 2010. Through "Mizuho Eco Private Placement," customers meeting certain conditions can receive financing for environment–related facilities or obtain environmentally conscious working capital at below–market rates.

MHBK provided Mizuho Eco Private Placement working capital support to Yamasa Sohgyou Co. Ltd., a fuel wholesaler located in the city of Nagoya. Yamasa pursues environmentally conscious management by, for example, disclosing its electricity and gas usage, and information on its efforts to reduce burnable waste, on its website. It also actively sells environmentally friendly devices as part of its product line. Yamasa expects to use Mizuho Eco Private Placement to further expand its sales of environmentally friendly products.

Presentation of a commemorative shield

Since February 2005, MHBK has promoted an all–electric housing loan, Happy E Home Loan, via a tie–up with the Kansai Electric Power Group. Through this product, MHBK provides financing with low interest for customers who want to build a new environment–friendly all–electric house or make additions/renovations with the same all–electric concept. In fiscal 2010, MHBK provided Happy E Home Loans totaling JPY 7,599 million to 461 borrowers. The balance as of March 31, 2011, was JPY 51,304 million.

The Japan Environment Association invited public participation in its "No–Interest Financing/Interest Subsidy Delivery Project for Special Support to Achieve the Kyoto Protocol Target." MHBK and MHCB applied for it and developed financing services to address the project. In fiscal 2010, these two companies are also developing financing products to address the "No–Interest Financing/Interest Subsidy Delivery Project for Special Support for Accelerating Global Warming Countermeasures."

The purpose of this project is to promote capital investments to reduce CO2 emissions to achieve the Kyoto Protocol targets. Among environment–oriented financing services provided by private financial institutions, a maximum of 3% interest is supplied for the financing of global warming countermeasures via this project. Corporations that receive the financing are required to pledge a target reduction volume of CO2 emissions.