Disposal of Preferred Shares of Towa Bank

Press Release

Date: May 8, 2018

  1. Based on the Act on Special Measures for Strengthening Financial Functions, Towa Bank recently requested to the Resolution and Collection Corporation (the RCC hereafter) to dispose the bank’s preferred shares held by the RCC. The DICJ received the RCC’s application on disposing the shares for approval.
  2. The DICJ considered this matter based on “Immediate Guideline for Disposal of Preferred Shares and other Capital-Raising Instruments Acquired through Capital Injection with Public Funds”, announced in October 2005. After considering, the DICJ concluded that there were no problems on this matter from the following viewpoints:
    • Sound management of financial institutions
    • Avoiding people’s cost burden
    • Stability financial system
    Today, the DICJ approved the RCC’s application based on the approvals of the Commissioner of the Financial Services Agency and the Minister of Finance on the matter.
  3. The overview of the matter is as follows:
Outline of related preferred shares
Name of share Preferred Stock Ⅱ
Total amount issued ¥35,000,000,000
Number of shares issued 17,500,000 shares
Value Per Stock \2,000
Amount currently held \35,000,000,000
Number of shares currently held 17,500,000 shares
Outline of the disposal
Name of share Preferred Stock Ⅱ
Disposed Book Value \20,000,000,000
Number of shares of disposal 10,000,000 shares
Value Per Stock \2,274.40
Total disposal amount \22,744,000,000
Expected date of disposal May 11, 2018
Outstanding of preferred shares after disposal
Name of share Preferred Stock Ⅱ
Book Value after disposal \15,000,000,000
Number of shares after disposal 7,500,000 shares

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