Disposal of Preferred Shares of the Chiba Kogyo Bank

Press Release

Date: July 1, 2013

1. The Chiba Kogyo Bank, Ltd. (“Chiba Kogyo Bank”) has recently made a request to the Deposit Insurance Corporation of Japan (“DICJ”) for repurchasing the preferred shares of the Chiba Kogyo Bank held by the Resolution and Collection Corporation (“RCC”) in accordance with the Act on Emergency Measures for Early Strengthening of Financial Functions (“Early Strengthening Act”).
   
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.
Therefor the DICJ judged that it was appropriate to meet the request based on the early disposal principle required by the Early Strengthening Act, and approved today the disposal application from the RCC.
   
3. This disposal, which is outlined as below, will result in full repayment of public funds injected into the Chiba Kogyo Bank.

Outline of related preferred shares

Type of share Series 3 Class 3 Preferred Shares
Total amount issued ¥60,025,000,000
Number of shares issued 17,150,000 shares
Issue price ¥3,500 per share
Amount currently held ¥60,025,000,000
Number of shares currently held 17,150,000 shares

Outline of disposal by the RCC (repurchase by the Chiba Kogyo Bank)

Type of share Series 3 Class 3 Preferred Shares
Book value of disposal ¥60,025,000,000
Number of shares of disposal 17,150,000 shares
Disposal price ¥3,511.7516 per share
Total disposal amount ¥60,226,539,940
Expected date of disposal July 4, 2013

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