Shinsei Bank Ltd., partly owned by investor Christopher Flowers, plans to raise about ¥50 billion as writedowns of toxic assets drive it to a full-year loss.
The preferred securities won't dilute the Tokyo-based bank's common stock and will help it increase its Tier-1 capital ratio to 7 percent, Chief Financial Officer Rahul Gupta said Monday. The company said Friday it would raise tens of billions of yen, without being more specific.
Shinsei joins larger banks, including Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc., in raising funds as losses on investments sap capital. The bank's stock, the worst-performing among Japanese lenders in the past 12 months, rose after falling 8.8 percent to a record low Monday.