Disposal of Preferred Shares of Aozora Bank

Press Release

Date: June 22, 2015

  1. Aozora Bank, Ltd. (“Aozora Bank”) has recently made a request to the Deposit Insurance Corporation of Japan (“DICJ“) and the Resolution and Collection Corporation (“RCC”) for disposing its preferred shares held by both corporation each.
  2. Based on a request to DICJ and a request to approve the disposal from the RCC, the DICJ considered the disposal based on its “Immediate Guideline for Disposal of Preferred Shares and other Capital-Raising Instruments Acquired through Capital Injection with Public Funds” announced in October 2005, and did not find any special problems in view of the following:
    • The soundness of management of the financial institution;
    • Avoiding public costs; and
    • Financial system stability.
    Therefore today the DICJ decided on disposal of preferred shares of Aozora Bank held by the DICJ, and approved the request to approve the disposal from the RCC concerning preferred shares held by the RCC.
  3. This disposal of preferred shares, which is outlined as below, will result in full repayment of public funds injected into Aozora Bank.
Outline of the related preferred shares
Name of share Series 4 Preferred Shares Series 5 Preferred Shares
Total amount issued ¥60,000,000,000 ¥260,000,100,000
Number of shares issued 120,000,000 shares 866,667,000 shares
Current holders Deposit Insurance Corporation of Japan The Resolution and Collection Corporation
Amount currently held ¥0 ¥67,277,577,000
Number of shares currently held 24,072,000 shares 214,579,295 shares
Number of shares of disposal 24,072,000 shares 214,579,295 shares
Total disposal amount ¥86,720,000,000 ¥56,709,999,965
Expected date of disposal June 29, 2015

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