Tokyo Kiraboshi to Fully Repay Public Funds Early

Tokyo, May 8 (Jiji Press)–Tokyo Kiraboshi Financial Group Inc. said Friday that it will complete the repayment of 40 billion yen in public funds injected into its predecessor by the Tokyo metropolitan government ahead of schedule. The parent of Kiraboshi Bank had previously set a target of completing repayments by fiscal 2028, but decided to do so earlier than planned thanks to its robust business performance. Tokyo Kiraboshi Financial Group will buy back 40 billion yen in preferred shares held by the metropolitan government by the end of this month and retire them. Tokyo Kiraboshi Financial Group President and Group CEO Hisanobu Watanabe told a press conference Friday that the retirement of the preferred shares is the company’s “biggest wish.” “Considering the degree of management freedom, there are many advantages (to finishing repayment) ahead of schedule,” he added. “We hope to continue supporting small businesses together, as the group is a regional financial institution,” Tokyo Governor Yuriko Koike told reporters Friday. The 40 billion yen was injected into the now-defunct ShinGinko Tokyo as a bailout in 2008, after the bank fell into a management crisis due to repeated reckless lending. ShinGinko Tokyo began operations in 2005 at the initiative of then Tokyo Governor Shintaro Ishihara, with an investment of 100 billion yen by the metropolitan government, in a bid to support small businesses struggling due to a credit crunch. It later came under the wing of former Tokyo TY Financial Group Inc., a holding company launched following a merger between former Tokyo Tomin Bank and former Yachiyo Bank. The two banks and ShinGinko Tokyo merged in 2018 to create Kiraboshi Bank, and the parent company was renamed Tokyo Kiraboshi Financial Group. Sumitomo Mitsui Trust Bank holds 15 billion yen in preferred shares in Tokyo Kiraboshi Financial Group. These are expected to be converted into common shares by the end of this month and sold on the market. END [Copyright The Jiji Press, Ltd.]