Mitsubishi UFJ to invest US$937 million in US Bancorp

JAPAN’S Mitsubishi UFJ Financial Group (MUFG) said on Thursday (Aug 3) it would invest US$936.7 million in US Bancorp to raise its stake in the US bank to 4.4 per cent.

US Bancorp will issue 24 million common shares at US$39.00 each to MUFG and use the proceeds to satisfy a portion of its previously announced repayment obligation to MUFG.

The payment is in connection with MUFG’s US$8 billion sale of its US retail banking unit MUFG Union Bank to US Bancorp last year.

In the deal, US Bancorp received US$3.5 billion in additional cash held by MUFG Union Bank which the US bank is required to repay.

MUFG also said it has agreed with a bank subsidiary of US Bancorp on US dollar liquidity support to strengthen its sustainable non-Japanese yen funding capacity. REUTERS