Japan's Mizuho to raise funds as profits dive
Japan's number two bank Mizuho Financial, hit hard by the credit crunch, said Thursday it would bolster its finances with a capital hike, after suffering a sharp drop in half-year profits.
Mizuho said it would issue preferred securities to domestic institutional investors through a subsidiary in the Cayman Islands.
It said the size of the capital hike had not yet been decided. The Nikkei business daily reported the bank was considering tapping investors for some 300 billion yen (3.1 billion dollars).
Mizuho last month slashed its profit forecast for this financial year by more than half, blaming the falling stock market, rising corporate bankruptcies and the collapse of Wall Street bank Lehman Brothers.
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