Disposal of preferred shares of Bank of the Ryukyus, Limited.and The Nishi-Nippon City Bank, Ltd.

Press Releases

Date: July 9, 2010

1.  Bank of the Ryukyus, Limited. and The Nishi-Nippon City Bank, Ltd. made requests for the disposal of preferred shares subscribed by the Resolution and Collection Corporation (RCC) in accordance with the Act on Emergency Measures for Early Strengthening of Financial Functions (“Early Strengthening Act”), through the RCC to Deposit Insurance Corporation of Japan (DICJ).
 
2.  DICJ considered the requests based on “Immediate Guideline for Disposal of Preferred Stocks, etc. Acquired through Capital Injection with Public Funds” announced in October 2005, and found it appropriate to give its approval to the requests for the disposal in view of the followings:

  • Soundness of management of the financial institution
  • Avoiding public burden
  • Financial system stability
Therefore, the DICJ approved today the privilege of acquisition claim and disposal which are to be exercised by the RCC as DICJ considered the both transactions were in line with the policy of early disposal under the Early Strengthening Act.
 
3.  These disposals will have result in full repayment of public funds injected into Bank of the Ryukyus Limited. and The Nishi-Nippon City Bank, Ltd.

Bank of the Ryukyus, Limited.

• Outline of preferred shares

Name of share Class 1 Preferred Shares
Amount issued ¥40 billion
Number of shares issued 8,000,000 shares
Issue price ¥5,000 per share
Value possessed ¥6 billion
Number of shares possessed 1,200,000 shares

• Outline of the disposal

Name of share Class 1 Preferred Shares
Disposed book value ¥6 billion
Number of shares disposed 1,200,000 shares
Disposal price ¥5,021.58 per share
Total amount of disposal ¥6,025,896,000
Date scheduled for disposal July 14, 2010

The Nishi-Nippon City Bank, Ltd.

• Outline of preferred shares

Name of share Series 1 Preferred Shares
Amount issued ¥70 billion
Number of shares issued 70,000,000 shares
Issue price ¥1,000 per share
Value possessed ¥35 billion
Number of shares possessed 35,000,000 shares

• Outline of the disposal

Name of share Series 1 Preferred Shares
Disposed book value ¥35 billion
Number of shares disposed 35,000,000 shares
Disposal price ¥1,003.4521 per share
Total amount of disposal ¥35,120,823,500
Date scheduled for disposal July 14, 2010

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