Tokyo: Citigroup Inc., which has made a $13.4 billion takeover bid for Nikko Cordial Corp., said it will receive syndicated loans from Japanese banks for the acquisition.
Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Citigroup’s banking unit will lead 1.7 trillion yen ($14.3 billion) of loans, the Nikkei newspaper reported earlier on 9 April, without saying where it obtained the information.
“This yen loan facility, which is for general corporate purposes, is part of Citigroup’s global borrowing programme,” said Atsuko Yoshitsugu, a Tokyo-based spokeswoman at Citigroup, in a statement e-mailed to Bloomberg News. “It will help us better match the currency requirements of the recently announced Nikko Cordial transaction.” She declined to comment further.
Citigroup, which owns a 4.9% stake in Nikko, said in March it will seek to acquire control of Nikko Cordial, Japan’s third-largest securities firm. Mizuho, which holds 4.8% of Nikko, said it will tender the shares to Citigroup.