Shinsei raises $508 million through preferred securities

The troubled bank increases its core capital ratio by a scant 0.5% following the issue. Interest payments on the new securities will weigh on earnings.

Shinsei Bank has marked the return of  president and CEO  Masamoto Yashiro by raising 48.2 billion $508 million, which should have a beneficial impact on its tier-1 capital adequacy ratio. However, the improvement will be only in the order of 0.5%, according to one analyst. In addition, the bank's tumbling earnings will have to stretch to cover roughly 2 billion of annual interest payments on the new securities.

The transaction, which was placed privately, comes in four...

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