
DJ Sumitomo Mitsui Finl To Issue Y250-300B In Shares -Nikkei
TOKYO (Nikkei)--Sumitomo Mitsui Financial Group Inc. (J.SMF or 8316) has
decided to issue an additional Y250 billion to Y300 billion yen in shares by the
end of March to guard against further bad-loan disposals and a decline in the
value of its shareholdings, The Nihon Keizai Shimbun reported in its Sunday
edition, citing sources close to the matter.
The decision, expected to be finalized later this month, comes on the heels
of a Y150 billion share issuance to Goldman Sachs Group Inc. (GS) this month.
The planned issue by Sumitomo Mitsui will bring the total amount of money
raised through new stock issues by the top five banking groups to Y2.08
trillion to Y2.18 trillion. The figure is comparable to the combined total of
Y2.15 trillion in new shares issued by large banks when they received public
fund injections of Y7.5 trillion in fiscal 1998.
Sumitomo Mitsui projects a group net profit of Y30 billion for the year ending
this March and a capital adequacy ratio of around 10% for March 31, compared
with the minimum 8% required by the Bank for International Settlements.
However, inspections of the group's banking operations, which the Financial
Services Agency intends to conduct rigorously, could force the group to set
aside additional loan-loss reserves as well as post a net loss or a lower
capital adequacy ratio.
The group hopes to avert such a situation by issuing more shares, which it
estimates will raise the capital adequacy ratio by 0.6 to one percentage point.
The additional funds will be raised in the form of preferred stock through
third-party allocations, as was the case with the share sales to Goldman Sachs.
Sumitomo Mitsui is considering allotting the new shares to domestic and
foreign institutional investors but will likely sell them mainly to U.S. and
European hedge funds. The FSA is watching out to see who will purchase the
shares because sales to hedge funds could destabilize the stock price.
Among other major banks, the Mizuho Financial Group (J.MFN or 8305) intends to
issue Y1 trillion in preferred stock mainly to domestic companies with which it
has close business ties, and the UFJ Group (J.UFJ or 8307) plans to issue
preferred stock through a spun-off unit taking over problem loans.
Mitsubishi Tokyo Financial Group Inc. (J.MFG or 8306) intends to issue common
stock through a public offering.
(END) Dow Jones Newswires
15-02-03 1825GMT(AP-DJ-02-15-03 1825GMT)
Feb-15-2003 18:25 GMT
Symbols:
US;GS JP;6136 GB;J0MFN GB;NWFX JP;8753 JP;8307 US;MTF DE;GOS US;SMFI
DE;SZ6
Source DJBK Dow Jones Bankers Wire
Categories:
I/BAF I/BAN I/BNK I/FIS I/SCR I/X225 I/XATI I/XBNY I/XSP5 I/XSTF
N/BKG N/CMDI N/DJCB N/DJI N/DJIV N/DJMO N/DJPT N/ECR N/EWR N/WER N/ADR
N/CNW N/DJWB N/DJWI N/HIY N/NIK N/NJR N/NKR N/PRSS N/TPCT N/WEI M/FIN M/NND
M/TPX P/BKG P/CMR P/DJCB R/ASI R/FE R/JA R/NME R/NY R/PRM R/US R/USE
MST/I/BAN MST/I/BNK MST/I/FIS MST/I/SCR MST/S/ADR MST/I MST/F/HIY MST/R/ASI
MST/R/JP MST/R/NME MST/R/US/NY MST/R/PRM MST/R/US
TOKYO (Nikkei)--Sumitomo Mitsui Financial Group Inc. (J.SMF or 8316) has
decided to issue an additional Y250 billion to Y300 billion yen in shares by the
end of March to guard against further bad-loan disposals and a decline in the
value of its shareholdings, The Nihon Keizai Shimbun reported in its Sunday
edition, citing sources close to the matter.
The decision, expected to be finalized later this month, comes on the heels
of a Y150 billion share issuance to Goldman Sachs Group Inc. (GS) this month.
The planned issue by Sumitomo Mitsui will bring the total amount of money
raised through new stock issues by the top five banking groups to Y2.08
trillion to Y2.18 trillion. The figure is comparable to the combined total of
Y2.15 trillion in new shares issued by large banks when they received public
fund injections of Y7.5 trillion in fiscal 1998.
Sumitomo Mitsui projects a group net profit of Y30 billion for the year ending
this March and a capital adequacy ratio of around 10% for March 31, compared
with the minimum 8% required by the Bank for International Settlements.
However, inspections of the group's banking operations, which the Financial
Services Agency intends to conduct rigorously, could force the group to set
aside additional loan-loss reserves as well as post a net loss or a lower
capital adequacy ratio.
The group hopes to avert such a situation by issuing more shares, which it
estimates will raise the capital adequacy ratio by 0.6 to one percentage point.
The additional funds will be raised in the form of preferred stock through
third-party allocations, as was the case with the share sales to Goldman Sachs.
Sumitomo Mitsui is considering allotting the new shares to domestic and
foreign institutional investors but will likely sell them mainly to U.S. and
European hedge funds. The FSA is watching out to see who will purchase the
shares because sales to hedge funds could destabilize the stock price.
Among other major banks, the Mizuho Financial Group (J.MFN or 8305) intends to
issue Y1 trillion in preferred stock mainly to domestic companies with which it
has close business ties, and the UFJ Group (J.UFJ or 8307) plans to issue
preferred stock through a spun-off unit taking over problem loans.
Mitsubishi Tokyo Financial Group Inc. (J.MFG or 8306) intends to issue common
stock through a public offering.
(END) Dow Jones Newswires
15-02-03 1825GMT(AP-DJ-02-15-03 1825GMT)
Feb-15-2003 18:25 GMT
Symbols:
US;GS JP;6136 GB;J0MFN GB;NWFX JP;8753 JP;8307 US;MTF DE;GOS US;SMFI
DE;SZ6
Source DJBK Dow Jones Bankers Wire
Categories:
I/BAF I/BAN I/BNK I/FIS I/SCR I/X225 I/XATI I/XBNY I/XSP5 I/XSTF
N/BKG N/CMDI N/DJCB N/DJI N/DJIV N/DJMO N/DJPT N/ECR N/EWR N/WER N/ADR
N/CNW N/DJWB N/DJWI N/HIY N/NIK N/NJR N/NKR N/PRSS N/TPCT N/WEI M/FIN M/NND
M/TPX P/BKG P/CMR P/DJCB R/ASI R/FE R/JA R/NME R/NY R/PRM R/US R/USE
MST/I/BAN MST/I/BNK MST/I/FIS MST/I/SCR MST/S/ADR MST/I MST/F/HIY MST/R/ASI
MST/R/JP MST/R/NME MST/R/US/NY MST/R/PRM MST/R/US