7 bln in share issue
(In Jan 6 story, corrects paragraph 10 to say Basel Committee published a draft of banking reforms last month . not . [ID:nTOE5BD089]
The announcement was widely expected after Reuters reported on Tuesday the bank was planning to raise funds. [ID:nTOE60404B]
It said it would use some of the capital to strengthen its business in Asia and the wholesale operations of its brokerage arm, Nikko Cordial Securities.
The fundraising will increase outstanding shares by 35.4 percent.
Preferred shares do not count as the capital that will be emphasised under new global standards for banks.
still don know what the (Basel) rules are going to canada goose uk outlet be, but this obviously puts cheap Canada Goose SMFG closer to being past the post, said Brian Waterhouse, Japan bank analyst at brokerage CLSA.
don think that they would need to canada goose clearance sale come back to the market for further capital, particularly Canada Goose Jackets if they are successful in getting Goldman Sachs to convert their (preferred shares) into common equity.
The Basel Committee on Banking Supervision, made up of central canada goose uk black friday bankers and supervisors from nearly 30 countries, published a draft of banking reforms last month, but Canada Goose online specific Canada Goose Online numbers for capital requirements have yet to be decided.
CORE TIER 1 Intended to help prevent another financial crisis, the new rules canadian goose jacket will emphasise a bank core Tier 1 ratio, a measure of financial strength that is likely to be defined canada goose coats by common equity canada goose coats on sale and retained earnings, but not include preferred shares buy canada goose jacket cheap and preferred securities.
Analysts estimate canada goose that Japanese lenders have some of the lowest core Tier 1 ratios among major global banks, in cheap canada goose uk part because canada goose store they previously relied on preferred securities to raise funds.
While the Basel Committee has canada goose clearance yet to finalise its definition of core Tier 1, in a case Canada Goose sale scenario SMFG will have more uk canada goose outlet than 5 percent core Tier 1 expeditionparkaoutlets , the executive said.
Many analysts expect that a minimum of 4 percent will be introduced. SMFG aims to shrink its stock portfolio by of billions of yen said the executive, who declined to be identified by name.
A decrease in stock holdings website , which are risk assets, would also raise the bank canada goose uk shop capital ratio.
SMFG also said it aimed to buy back from overseas investors about $2.5 billion worth of preferred securities and about $2.4 billion of subordinated debt.
The share price for the offering will uk canada goose be decided between January Canada Goose Outlet 20 and 22, and the payment date will be five business days buy canada goose jacket after the price is determined.
Sumitomo Mitsui predecessor bank Canada Goose Coats On Sale initially gave Goldman a much needed $500 million cash injection. The Wall Street firm returned canada goose factory sale the favour in 2003, buying $1.4 billion of Sumitomo Mitsui preferred shares canada goose black friday sale at the height of Japan banking crisis.
Some critics accused Goldman of gouging SMFG at a time when the Japanese bank was desperate for capital, citing an unusually high Canada Goose Parka dividend on the preferred shares.