島根銀行 announced a plan to raise ¥10 billion through a private placement capital increase underwritten by SBI Shinsei Bank,Limited. It aims to restore its financial base and increase its capacity to provide funding to the region by also selling ¥60 billion of securities and recording a ¥6.5 billion loss on sale.
島根銀行 will raise ¥10 billion through a private placement capital increase underwritten by SBI Shinsei Bank,Limited. The capital increase will take the form of an issuance of preferred shares, with implementation targeted for late December. This will be the third investment in 島根銀行 by the SBI Group and the largest to date.
島根銀行 will also sell ¥60 billion of securities carrying valuation losses in the fiscal year ending March 2027 and record a ¥6.5 billion loss on sale. It plans to restore the financial base impaired by the recognition of the loss through the capital increase and strengthen its capacity to provide funding.
After the capital increase, the consolidated capital ratio for the fiscal year ending March 2027 is expected to improve to approximately 8.5%. 島根銀行 has maintained a capital and business alliance with the SBI Group for many years and has indicated a policy of strengthening its contribution to the regional economy.