TOKYO (AFP) — Japan's Mitsubishi UFJ Financial Group Inc. is considering raising one trillion yen (11 billion dollars) in new capital following its massive investment in Morgan Stanley, it was reported Sunday.
MUFG, Japan's biggest financial group, has already asked three Japanese and US investment banks to be co-lead managers of the stock offering, all of which gave their consent, the Nikkei business daily said.
MUFG will call on domestic and overseas investors, particularly institutional investors and investment funds in the Middle East and Asia, to buy its new stock, the newspaper said.
It will likely boost its capital by issuing preferred shares through private offerings and common shares via public offerings by March next year, the daily said.
MUFG hopes to strengthen its financial soundness to cover a drop in its capital ratio caused by its nine billion dollar investment in Morgan Stanley and falling prices of its shareholdings amid the financial crisis, it added.
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