Japanese bank Resona seeks $6.9-bn in share sale

Japan's fourth-largest banking group Resona Holdings Inc said Friday that it plans to raise up to ¥575 billion ($6.9 billion) by issuing new shares through a global public offering to repay part of its government debt.

''Consistent with the Resona Group's capital strategy and efforts to repay public funds, Resona Holdings plans to use funds raised through the issuance of new shares, together with other available amounts, to repurchase certain of our outstanding convertible preferred stock held by the Deposit Insurance Corporation of Japan,'' a statement issued by the bank said.

The lender plans to issue approximately 1.24 billion new shares to domestic and international investors.

Nearly 53-per cent of the total issue or 652 million shares are kept for Japanese public offering, while the balance 585 million shares are earmarked for international offering, which comprises 479 million shares to be purchased by international investors and 106 million under an option granted to international managers.

The final amount raised will depend on the pricing of the issue, which will be decided during 24-26 January 2011. The lender has fixed the payment date as 31 January to 2 February.

At the closing price of ¥523 for Resona Holdings Friday on the Tokyo Stock Exchange, the total value of 1.24 billion shares works out to around ¥650 billion, significantly higher than the targetted amount.