In Japan, Mizuho Corporate Bank, a unit of Mizuho Financial Group, is joining forces with Morgan Stanley on a securitization of loans deemed as "requiring attention" under the country's Financial Reconstruction Law. Mizuho Securities will act as arranger on the 40 billion ($368.3 million) offering, a first of its kind for Japan.

While the underlying loans cannot be classed as nonperforming because the obligors are not bankrupt, they are effectively NPLs, as the borrowers cannot meet their existing loan requirements and currently get assistance from the lenders through waived interest.

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