Business Oct. 29, 2008 - 04:01AM JST ( 0 )

TOKYO —

Aozora Bank said Tuesday it will buy back own shares worth up to 20 billion yen in preparation for its repayment of public funds it received in the past. In the year starting from Nov 17, the Japanese bank will buy back a maximum 165 million shares, or 10 pct of the outstanding shares.

The bank plans to pay back the public funds totaling 179.3 billion yen by exchanging preferred shares held by the government with common shares. Aozora Bank thus decided to buy back own shares as long as its share price stays at low levels amid the stock market slump, in order to secure a sufficient number of common shares to be given to the government.

JCN