Disposal of Preferred Shares of North Pacific Bank

Press Release

Date: July 22, 2013

1. North Pacific Bank, Ltd. (“North Pacific Bank”) made a request to the Deposit Insurance Corporation of Japan (“DICJ”) to sell preferred shares of North Pacific Bank held by the Resolution and Collection Corporation (“RCC”) in accordance with the Act on Special Measures for Strengthening Financial Functions.
   
2. The DICJ considered the request 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 the DICJ made an application for disposal of the shares to the Commissioner of the Financial Services Agency and the Minister of Finance, and the application was approved today.
Based on this, the DICJ approved the disposal application from the RCC today.

Outline of related preferred shares

Name of share Class 1 Preferred Shares
Total amount issued ¥100,000,000,000
Number of shares issued 200,000,000 shares
Issue price ¥500 per share
Amount currently held ¥100,000,000,000
Number of shares currently held 200,000,000 shares

Outline of disposal by the RCC (repurchase by North Pacific Bank)

Name of share Class 1 Preferred Shares
Book value of disposal ¥30,000,000,000
Number of shares of disposal 60,000,000 shares
Disposal price ¥588.70 per share
Total disposal amount ¥35,322,000,000
Expected date of disposal July 25, 2013

Outstanding amount and shares after disposal

Name of share Class 1 Preferred Shares
Book value after disposal ¥70,000,000,000
Number of shares after disposal 140,000,000 shares

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