Sumitomo Mitsui Financial Group Inc. unveiled a plan Monday to boost its capital base by the end of next month by issuing an additional 300 billion yen in preferred shares.
The plan calls for Sumitomo Mitsui to sell 100,000 preferred shares for 3 million yen each to its overseas affiliate SMFG Finance (Cayman) Ltd., based in the Cayman Islands. The affiliate will the repackage the shares for sale to institutional investors.
The plan is reportedly aimed at financing the disposal of bad loans and possible capital losses on shareholdings. It follows an issuance of shares worth 150 billion yen to Goldman Sachs Group Inc. earlier this month.