Hazama Corp. said Tuesday it will issue 8.2 billion yen in new shares June 27 and allocate them to 194 companies and individuals that have ties with the struggling construction firm.
Buyers of the new shares include Dai-Ichi Kangyo Bank, Mitsubishi Trust & Banking Corp. and Asahi Mutual Life Insurance Co.
Proceeds from the capital injection will be used for operating funds as well as for debt repayment, company officials said. The new share issue will boost Hazama’s capital to 24.25 billion yen from 16.05 billion yen, the company said.
Hazama has been looking to carry out the issue since August, when it reduced its capital by 8.2 billion yen. In September, its major creditor banks agreed to forgive a combined 105 billion yen in loans.
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