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8303 - Shinsei Bank News Story

¥1194 8.0  0.7%

Last Trade - 07/08/20

Sector
Financials
Size
Mid Cap
Market Cap £1.97bn
Enterprise Value £4.81bn
Revenue £2.70bn
Position in Universe 363rd / 3862

UPDATE 1-ANZ to sell NZ asset finance unit to Japan's Shinsei Bank for $479 mln

Tue 2nd June, 2020 1:27am
(Adds ANZ Bank NZ CEO comment, Shinsei Bank statement)
    June 2 (Reuters) - Australia and New Zealand Banking Group
 ANZ.AX  on Tuesday agreed to sell its New Zealand-based asset
finance unit for NZ$762 million ($479 million) to Japanese
financial institution Shinsei Bank Ltd  8303.T . 
    Australia's fourth-largest lender, which posted a plunge in
first-half profit in April, remains one of the better
capitalised banks with recent divestments strengthening its
coffers as it faces the impact of the coronavirus pandemic.
    The sale of UDC Finance provides about A$439 million
($298.08 million) of Level 2 Group CET1 capital, the lender said
in a statement. 
    For ANZ, Level 2 as per regulatory supervision includes the
capital of the group excluding associates, insurance and funds
management entities, among others.
    The Australian lender has been looking to sell UDC Finance
for a while now after abandoning plans of spinning off the unit
with a separate listing in 2018. [https://reut.rs/2XOlq7j
]
    The sale will also release NZ$2 billion of funding provided
by ANZ New Zealand, further strengthening its balance sheet
position.  
    "Shinsei Bank intends to preserve UDC's operations, retain
UDC employees and provide long-term capital to maintain and grow
customer lending in New Zealand," ANZ Bank New Zealand CEO
Antonia Watson said.    
    The Japanese lender said in a statement that its
consolidated capital adequacy ratio is expected to decline about
0.4 percentage points once it acquires UDC Finance.  urn:newsml:reuters.com:*:nFWN2DE0YG
    The sale is expected to be sealed in the second half of the
2020 calendar year. 
    
    ($1 = 1.5911 New Zealand dollars)
    ($1 = 1.4728 Australian dollars)

 (Reporting by Shreya Mariam Job in Bengaluru, Editing by Sherry
Jacob-Phillips)
 ((ShreyaMariam.Job@thomsonreuters.com;))
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