Japan-based banking giant SBI Holdings has entered into a Capital and Business Alliance with another leading banking entity, the Fukushima Banks, Ltd. to lubricate its regional revitalization initiative. The strategic partnership news was broadcasted on November 11, 2019.
According to the latest piece of information on the team-up, the project is designed with the primary objective of boosting the profitability of regional financial organizations by assisting programs and initiatives focused on leveraging the operations of these entities via direct investment proceeds from SBI Holdings and its sister concerns.
The official notice released by the company read:
Based on this business policy, we entered into a capital and business alliance with Shimane Bank, Ltd. in September this year, and this time we have formed a capital and business alliance with Fukushima Bank. We decided to work on improving the corporate value.
As a part of the partnership terms and conditions, Fukushima Bank will now join MoneyTap Co. Ltd, SBI Neo Financial Services Co. Ltd., and SBI FinTech Incubation Co. Ltd.
The firm will be underwriting 5,000,000 common shares for a value of 222 yen per share rounding up the total investment to a whopping sum of 1,100 million yen. The payment for the partnership project has been timelined from November 30, 2019, to January 31, 2020.
The company revealed that,
The SBI Regional Bank Value Creation Fund, outsourced by SBI Asset Management Co., Ltd., owns 373,200 shares of Fukushima Bank’s common stock (1.63% voting rights ratio as of March 31, 2019) The total voting rights ratio after the underwriting is scheduled to be 19.25%.
MoneyTap works as a consumer-oriented blockchain money transfer app that was created as a joint product of SBI Holdings and Ripple. It homes Sumishin Net Bank, Suruga Bank, as well as 28 other banks. Fukushima Bank is likely to be the 31st addition to the list and will be utilizing MoneyTap’s remittance facilities and Ripple’s tech services.