The bank underlined that it will spend JPY227.6bn ($2.9bn) over a decade to pay back about JPY180bn in public funds, and may be able to return all the money of Japanese exchequer before 2022 deadline.
The bailed out Japanese lender said it will pay JPY22.7bn ($289m) to the government by the end of March next year and after that it will continue paying JPY20.49bn ($260.87m) per annum until 2022.
Independently, it will repurchase 330 million common shares, or approximately 20% of its outstanding shares, begining in October 2012.
Aozora Bank, formerly Nippon Credit Bank, was nationalized in 1998, and was injected with a total of JPY355bn ($4.5bn) capital to keep the bank floating in 1998 and 2000.
The bank will seek shareholder approval to extend the preferred shares’ conversion to June 2022 to implement the repay plan, during a shareholders’ meeting on 27 September 2012.
Aozora chief executive officer Brian Prince told The Wall Street Journal, "Just injecting capital doesn’t solve a bank’s problems. It may solve some temporary credit problems but getting the bank back to a position where it can operate independently and profitably so that it can repay the government can take years."
