“Public Funds Full Repayment Plan” Announced by Resona Holdings

Press Release

Date: May 10, 2013

1. Today, Resona Holdings announced the following “Public Funds Full Repayment Plan” (the “Plan”):
     
  (1) Regarding 450 billion yen (on the basis of the injection amount) Deposit Insurance Act Preferred Shares, Resona Holdings will cancel 300 billion yen (on the basis of the acquisition amount) by purchase during the fiscal year ending March 2014.  It will fully repay the remaining by the end of fiscal year ending March 2018.
  (2) Regarding approximately 260 billion yen (on the basis of the injection amount) Deposit Insurance Act Ordinary Shares, Resona Holdings will cancel 100 billion yen (on the basis of the acquisition amount) by purchase during the fiscal year ending March 2014.  It will make an application for disposal of the remaining Deposit Insurance Act Ordinary Share to the Deposit Insurance Corporation of Japan (the “DICJ”) promptly thereafter.
  (3) Regarding 160 billion yen Early Strengthening Act Preferred Shares, Resona Holdings will extend the conversion period, and fully repay them in around five years through the special preferred dividend.
  (4) As return to the ordinary shareholders, in addition to (2) mentioned above, Resona Holdings plans to increase its dividend of ordinary shares to enhance the share value of the ordinary shareholders (an increase by 3 yen per share from the dividend for the fiscal year ending March 2014; an increase from 12 yen to 15 yen).
  (5) For the implementation of the above, the source of repayment of the public funds shall be secured by transfers within the capital account.
     
2. The DICJ understands that Resona Holdings will make an application for repayment of public funds to the DICJ, based on its approach to repayment of public funds described in the Plan.

The DICJ, in coordination with Financial Services Agency, will sincerely and appropriately consider and respond to the approach to repayment of public funds which is described in the Plan, based on the “Three Principles(Note)” mentioned in “Immediate Guideline for Disposal of Preferred Shares and other Capital-Raising Instruments Acquired through Capital Injection with Public Funds” announced in October 2005.

Note:  Three Principles in “Immediate Guideline for Disposal of Preferred Shares and other Capital-Raising Instruments Acquired through Capital Injection with Public Funds” (October 2005):
(1) Not damaging the soundness of management of the financial institution;
(2) Avoiding public costs; and
(3) Not damaging financial system stability.


Outline of the Risona Holding’s shares under consideration:

(Early Strengthening Act)
Name Class C Preferred SharesNote 1 Class F Preferred SharesNote2
Issue amount ¥60 billion ¥100 billion
Number of shares issued 12,000,000 sharesNote 3 8,000,000 sharesNote 3
Issue price ¥5,000 per share ¥12,500 per share
Mandatory acquisition date April 1, 2015 December 1, 2014
Amount currently held ¥60 billion ¥100 billion
Number of shares currently held 12,000,000 shares 8,000,000 shares
 
(Deposit Insurance Act)
Name First Series Class Three Preferred SharesNote 4 Ordinary SharesNote 4
Issue amount ¥550 billion ¥296.438428 billion
Number of shares issued 275,000,000 sharesNote 3 570,073,900 sharesNote 3
Issue price ¥2,000 per share
Acquisition price ¥520 per share
Mandatory acquisition date N/A
Amount currently held ¥450 billion ¥261.6965 billion
Number of shares currently held 225,000,000 shares 503,262,500 shares
Notes:
1. In April 2001, the Resolution and Collection Corporation (RCC) subscribed, based on the Early Strengthening Act.
2. In March 1999, the RCC subscribed, based on the Early Strengthening Act.
3. The number of shares is after adjustment for consolidation of shares in August 2005 and share splitting in January 2009.
4. In June 2003, the Deposit Insurance Corporation of Japan subscribed, based on the Deposit Insurance Act.

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