The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Asian markets round up: Megabanks grab capital

Japan’s megabanks embarked on a year-end fundraising spree that will spill over into 2009, despite spending much of 2008 seeming to enjoy excess capital reserves as they invested billions of dollars in foreign financial institutions. Deteriorating conditions in domestic stock markets, to which Japan’s top banks are heavily exposed, and the poor banking environment in general, mean that they are seeking to shore up their capital positions. The optimistic outlook is that the banks are raising funds in anticipation of high demand for loans in the new year. Sumitomo Mitsui Financial Group’s $5.8 billion preferred share issuance priced on December 11 was the largest deal of that kind from Japan ever, with the firm aiming to raise further funds in January. Three days earlier, on December 8, Mitsubishi UFJ Financial Group, the country’s largest banking group by assets, priced a ¥417 billion ($4.5 billion) common equity offering at a 3% discount to the share price. The group’s share price was the worst performing among Japan’s top three banks during the run-up to the deal’s pricing but the stock has since recovered.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree