Resona Holdings Inc., Japan's fourth-largest banking group, said Friday that it will sell preferred shares to Dai-ichi Mutual Life Insurance Co. and use the proceeds to repay funds received in a government bailout.
Dai-ichi Mutual, Japan's second-largest life insurer, will buy 100 billion yen in preferred shares, the bank said at a briefing. Resona will use the money to pay part of the 2.3 trillion yen it owes the government.
Resona is the only one of Japan's four biggest banks that still carries debt from a government injection of 12.4 trillion yen to rescue banks from nonperforming loans swollen by three recessions after 1990. Mitsubishi UFJ Financial Group Inc., the biggest lender, and its two closest rivals completed repayment as the longest expansion since World War II helped boost corporate profits in the world's second-biggest economy.