Mitsubishi UFJ Financial Group, Japan's biggest bank, is mulling over plans to raise up to 1 trillion yen (equivalent to $11 billion)by issuing new shares to strengthen its capital base.
As per reports published in Nikkei business daily and other media, MUFG has plans to issue new shares by the end current year.
Though the offer price is yet to be determined, yet some media reports claimed that Bank’s new shares would value 1.27 trillion yen based on Bank’s closing price of 508 yen on Friday.
New shares will lift bank’s core equity capital ratio by 1 per cent from current 5.8 per cent.
In total, Japanese companies have already issued shares worth nearly $40 billion so far this year as compared with $4.5 billion in the same period of last year.
Shares in MUFG have already shed around 20 per cent in the last six months.
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