UPDATE 1-Mizuho says not considering rights issue

TOKYO, Jan 28 (BestGrowthStock) – Mizuho Financial Group (8411.T: ),
Japan’s second-largest bank by assets, is not considering a
rights issue as a way to raise new funds, a spokeswoman said on
Thursday.

Shares of the bank rose earlier this month following a media
report that Mizuho was considering such a scheme, although
analysts said at the time it would likely cause some logistical
challenges. [ID:nTOE60D00E]

Rights issues, although rare in Japan, have become a more
viable fundraising option after the Tokyo Stock Exchange recently
changed its rules on the process, limiting potential dilution.

“We are not considering a rights issue as a way to raise
funds,” said Masako Shiono, a Mizuho spokeswoman.

Mizuho is facing increased pressure to raise funds to meet
stricter global capital requirements. Its two main rivals,
Mitsubishi UFJ Financial Group (8306.T: ) and Sumitomo Mitsui
Financial Group (8316.T: ), have already launched massive share
sales.

Under the new TSE rules, companies can offer shareholders the
right to buy a fraction of one share for every existing share
held. The previous system required companies to offer the right
to buy one new share for every existing one.

Mitsubishi UFJ last month raised about 1 trillion yen ($11.1
billion) and Sumitomo Mitsui is raising 968 billion yen.

Analysts have estimated that Mizuho, the worst-capitalised of
the three major banks, will need to raise more than either of its
rivals.

The Basel Committee on Banking Supervision, made up of
central bankers and regulators from nearly 30 countries,
published a draft of reforms last month, calling for higher
levels of capital to prevent another financial crisis.

Stocks

(Reporting by David Dolan; Editing by Hugh Lawson)

UPDATE 1-Mizuho says not considering rights issue