Mitsubishi Financial (MTU) Reveals Some Details on 1T Yen Offering
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Mitsubishi Financial Group (MYSE: MTU), Japan's largest bank, is slated to raise about $12 billion (¥1.056 trillion) by selling new shares of common stock. This would equate to approximately 2.337 billion shares.
Of the shares, ¥459.1 billion will come locally and ¥527.8 billion will come from the global market. The price of the offering will be set between December 14 - 16, 2009.
In a statement from the bank, they noted how they were aiming to create a solid capital base through the offering, in order to continue to contribute to the global and domestic economy.
Mitsubishi, and other Japanese banks, will probably need to raise more capital in the wake of the stricter rules and regulations for capital reserves. Japanese banks have already raised about $19 billion this year through similar equity offerings.
Japanese banks will most likely target a core Tier 1 capital ratio of 7.85%.
Mitsubishi Financial recently reported profit of ¥141 billion for six months ending September 30, 2009, which is up from the ¥90.2 billion for the same period one year earlier. The bank reiterates that it sees net income of ¥300 billion.
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