Mizuho Financial, Japan’s second largest bank, has opted not to repay a $1.5bn junior security at the first opportunity, adding to the list of institutions globally that have not repaid similar debt and potentially aggravating some of its investors.

The bank said its decision was based partly on the understanding that capital instruments issued in the Asian retail market were not normally redeemed at the first opportunity. Although it also referred to its capital position and discussions with regulators.