Subscription for and Completion of Disposal of Preferred Shares of Howa Bank

Press Release

Date: March 31, 2014

1. On March 7, the Financial Services Agency decided capital injection with public funds into the Howa Bank, Ltd. (Howa Bank) in accordance with Article 5, paragraph 1 of the Act on Special Measures for Strengthening Financial Functions (“Financial Functions Strengthening Act”.) Based on the decision, the Resolution and Collection Corporation (“RCC”) subscribed for preferred shares issued by the Howa Bank (Class D preferred shares) today. The subscribed preferred shares are outlined in (1) below.
   
2. Operation of capital injection with public funds through subscription for the preferred shares mentioned above aims at the smooth provision of funds to small and medium-size enterprises and revitalization of local economy by enhancing the financial intermediary functions of the Howa Bank. It is one of the most important operations of the Deposit Insurance Corporation of Japan (“DICJ”). 
   
3. The DICJ will continue to closely cooperate with the relevant authorities and will execute operations of capital injection with public funds surely and smoothly.
   
4. The disposal of preferred shares held by the RCC (Class C preferred shares) in accordance with the Financial Functions Strengthening Act was completed. The disposed preferred shares are outlined in (2) below.
   
(1) Outline of subscribed preferred shares
Name of shares Class D preferred shares
Total amount ¥16,000,000,000
Number of shares issued 16,000,000 shares
Issue price ¥1,000 per share

(2)  Outline of disposed preferred shares
Name of shares Class C preferred shares
Book value of disposal ¥9,000,000,000
Number of shares disposed 9,000,000 shares
Disposal price ¥1,016 per share
Total amount of disposal ¥9,144,000,000
Date of disposal March 31, 2014

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