EBank expecting Y10 bil capital injection

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Japan’s Internet-only bank eBank is making final adjustments to boost its capital by 10 billion yen to make up for losses stemming from the U.S. subprime mortgage turmoil, informed sources said Tuesday.

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The government-affiliated Development Bank of Japan, which is effectively the largest shareholder in eBank, is expected to accept the subordinated bonds to be issued by the Internet bank by the end of this month, according to the sources.

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EBank incurred a net loss of 11,639 million yen in April-December last year because of appraisal and other losses on securitized products including those linked to subprime loans.

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The envisaged capital hike is expected to raise eBank’s capital-to-asset ratio from 9.13% as of the end of December to more than 10%, the sources said.

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The DBJ, which has a 14.91% stake in eBank through an affiliated investment fund, is poised to support eBank’s turnaround by enhancing its cooperation with the online bank in fund management, they said.

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