STRATEGIC PARTNERS
February 28, 2002
TOKYO -- Japanese retailer Ito-Yokado Co Ltd says that its banking unit, IY Bank, would double its capital to 61 billion yen ($457.7 million) through a private placement of new shares on March 26.
The move comes in line with the bank's announcement in January that it planned to raise around 30 billion yen ($1 equals 133.26 yen).
The retailer said 32 companies, including major life and casualty insurers, would buy the new shares in the ATM-only bank while keeping the Ito-Yokado group's stake at over 50 percent.
IY Bank began operations last May and hopes to break even after three years of operations.
Its ATMs are located in 7-11 stores throughout Japan, which are owned by Ito-Yokado. The company has also announced plans to install ATMs at Denny's restaurants.
Under agreements IYBank has with four traditional banks, Sanwa Bank, Asahi Bank, Shizuoka Bank and Chiba Bank, customers of those banks can access their accounts through IYBank ATMs. In return, IYBank receives interchange fees.
