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Norinchukin eyes raising Y300 billion capital

Tuesday 28th October, 02:40 PM JST

TOKYO —

Norinchukin Bank, the de-facto central bank for Japan’s farm and fishing cooperatives, eyes raising some 300 billion yen in fresh capital by the yearend by taking out perpetual subordinated loans from financial institutions within its group, informed sources said Tuesday.
   
With the move, Norinchukin Bank wants to expand its shareholders’ equity and secure the soundness of its financial profile, as the global financial crisis has caused the value of its bond and stock holdings to dive, inflating evaluation losses on such assets, the sources said. The capital procurement of 300 billion yen would add 1 percentage point to the bank’s capital adequacy ratio, which stood at 11.9% as of June 30, they said.
   

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