PHOTO
Japan's Mizuho Financial Group announced the listing of the One ETF FTSE Saudi Arabia Index on the Tokyo Stock Exchange (TSE) today, with the Saudi sovereign wealth fund named an anchor investor.
The $925 billion Public Investment Fund (PIF) is one of two anchor investors in the ETF, with the second being Mizuho.
The ETF, which has been established and managed by Mizuho subsidiary, Asset Management One Co, will facilitate investments in Saudi Arabia's equity market.
The initial market capitalisation of the ETF exceeded 15 billion yen ($100 million), said Mizuho, calling it the largest ETF investing solely on the Saudi Arabian equity market on TSE1.
The listing was part of a wider Mizuho-led investment programme with the inaugural Saudi Investment Forum also taking place in Tokyo, bringing together financial institutions and listed companies in both Japan and Saudi Arabia.
Earlier this year, Mizuho also revealed plans to set up its regional headquarters in Saudi, in line with the kingdom’s diktat for foreign companies to either set up their Middle East base in the country or run the risk of losing out on lucrative government contracts.
The firm already has a presence in the kingdom since 2009 through its subsidiary, Mizuho Saudi Arabia, which operates as an investment bank.
(Writing by Bindu Rai, editing by Brinda Darasha)
