Mitsubishi Tokyo Financial Group Inc. plans to issue 250 billion yen in preferred shares by the end of March to expand its capital base ahead of its planned merger with UFJ Holdings Inc. in October, MTFG officials said Wednesday.
Tokio Marine & Nichido Fire Insurance Co. and Meiji Yasuda Life Insurance Co. are each expected to purchase 100 billion yen out of the planned preferred shares. Nippon Life Insurance Co. might buy the remainder.
The capital expansion will contribute to allowing UFJ to repay some 1.5 trillion yen in public funds it received earlier for recapitalization, the officials said.