Disposal of Preferred Shares of Howa Bank

Press Release

Date: March 10, 2014

1. The Howa Bank, Ltd. has recently made a request to the Resolution and Collection Corporation (“RCC”) for disposing its preferred shares (class C Preferred Shares) subscribed by the RCC in accordance with the Act on Special Measures for Strengthening Financial Functions. The Deposit Insurance Corporation of Japan (“DICJ”) has been requested 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” 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.

The DICJ was approved for this disposal today by the Commissioner of the Financial Services Agency and the Minister of Finance and approved the request for the disposal from the RCC.
Based on this, the RCC will sell the shares and implement the disposal, which is outlined as below.

Outline of related preferred shares disposed (sold) by the RCC
Name of share Class C Preferred Shares
Total amount issued ¥9 billion
Number of shares issued 9,000,000 shares
Issue price ¥1,000 per share
Book value of disposal ¥9 billion
Number of shares disposed 9,000,000 shares
Disposal price ¥1,016 per share
Total amount of disposal ¥9,144,000,000
Date scheduled for disposal March 31, 2014

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