The governmental Development Bank of Japan plans to take a stake in a joint venture that Mizuho Financial Group Inc. wants to form by July to help rehabilitate troubled corporate borrowers, sources said Friday.
The venture is expected to be capitalized at 100 million yen and owned around 10 percent by the DBJ, 20 percent to 30 percent by foreign financial institutions and the remainder by Mizuho group firms, the sources said.
The DBJ will acquire a stake in the venture because it is in line with the government's plan to accelerate disposals of banks' bad loans through the rehabilitation of corporate borrowers, the sources said.
The planned venture is expected to send managers to troubled firms, and the DBJ will set up rehabilitation funds for those firms, the sources said.
The Mizuho group's three core banks -- Mizuho Bank, Mizuho Corporate Bank and Mizuho Trust & Banking Co. -- also plan to set up four firms, possibly in July, and have them take over 4 trillion yen in bad loans held by the banks, bank officials have said.