Regional Bank Group Jimoto Holdings to Tie Up with SBI

Economy

Tokyo, Nov. 19 (Jiji Press)--Japanese regional banking group Jimoto Holdings Inc. <7161> is set to form a capital and business alliance with major online financial service firm SBI Holdings Inc. <8473>, informed sources said Thursday.

Jimoto, the parent of Sendai Bank and Kirayaka Bank, will issue new shares to SBI under a third-party allotment scheme, the sources said. SBI will invest billions of yen in Jimoto to acquire an equity stake of a little less than 20 pct in the bank holding company.

Through the tie-up, Jimoto, based in Sendai, the capital of Miyagi Prefecture, northeastern Japan, hopes to beef up its financial base. The two sides will make an announcement on the partnership on Friday, the sources said. Sendai Bank operates mainly in Miyagi, and Kirayaka Bank in neighboring Yamagata Prefecture.

Under its initiative to create a union of regional banks, SBI is seeking to invest in up to 10 banks. The addition of the two Jimoto group lenders will bring the number of banks in the initiative to seven.

SBI and Jimoto will also set up a joint fund to support local companies hit hard by the novel coronavirus crisis and launch fintech services, the sources said. SBI will help the Jimoto group enhance its asset management operations.

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