The Howa Bank, Ltd. (FKSE:8559) announced a private placement of 16,000,000 series D preferred shares at ¥1,000 per share for gross proceeds of ¥16,000,000,000 on March 7, 2014. The preferred share will pay dividend at the rate of 12 months Tibor plus 0.95% per annum. The company expects to receive corporate resolution for the transaction on March 10, 2014. The transaction is expected to close on March 31, 2014. On the same date, the transaction was approved by the Financial Services Agency.

On March 10, 2014, the company announced that the transaction will include participation from new investor, The Resolution and Collection Corporation. The company will receive net proceeds of ¥15,920,000,000 after deducting ¥80,000,000 for registration, license tax, and financial and legal advisor fees.

On March 31, 2014, The Howa Bank, Ltd. closed the transaction. The company issued the securities through third party allocation. The company issued convertible preferred stock in the transaction. Barclays Securities Japan Limited acted as financial advisor to the investor.