Tomato Bank, Ltd.
Notice Regarding Issuance of the 3rd Series A Preferred Shares by Third-Party Allotment, Acquisition and Cancellation of the 2nd Series A Preferred Shares, and Reduction of Capital and Capital Surplus
Tomato Bank, Ltd. will issue 700,000 shares of the 3rd Series A preferred shares by third-party allotment, raising 7,000 million yen. The entire amount will be applied to redemption of the 2nd Series A preferred shares. Concurrently, capital will be reduced by 3,500 million yen and capital surplus will be reduced by 3,500 million yen, and an acquisition clause will be established. Allottees include local Okayama financial institutions. As of the end of March 2027, the BIS capital ratio is expected to be in the mid-8% range. The 2nd Series preferred shares will be acquired and cancelled.
Key Figures
- 7,000,000,000 yen: Amount to be raised
- 3,500,000,000 yen: Reduction in capital
- 3,500,000,000 yen: Reduction in capital surplus
AI要約
Overview of Capital Policy
Tomato Bank, Ltd. will issue 700,000 shares of the 3rd Series A preferred shares by third-party allotment at a payment amount of 10,000 yen per share, raising a total of 7,000 million yen. Approximately 70 million yen is estimated as issuance costs, and the remaining amount will be applied to redemption of the 2nd Series A preferred shares. Part of the redemption funds will be treated as capital-like funds that can be included in core capital rather than debt-like borrowings, and the bank intends to stably maintain a Basel III domestic standard capital ratio above 8%. After issuance, capital will be reduced by 3,500 million yen and capital surplus will be reduced by 3,500 million yen.
Outlook and Dilution Impact
The acquisition clauses for the 3rd Series preferred shares include cash consideration acquisition after the acquisition date and acquisition with ordinary shares as consideration, and explanations on dilution have been provided cautiously. The redemption funds for the 2nd Series preferred shares are approximately 100 million yen, and about 70 million yen of this will be covered by the current third-party allotment. Dilution from acquisition/conversion is expected to be limited, and the structure for cash consideration acquisition after 2031 is designed to mitigate dilution impact.
Tomato Bank, Ltd.
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