OREANDA-NEWS. Aozora Bank, Ltd. today announced the submission of its revised Business Revitalization Plan ("BRP") to Japan's Financial Services Agency (FSA).

The full repayment of public funds has been a corporate priority at Aozora, and management has strived to establish a sustainable business foundation which would increase the Bank's corporate value.

In August 2012, the Bank announced its 'Comprehensive Recapitalization Plan,' in tended to benefit all shareholders, and which included a plan for the full repayment of public funds over time. The Bank officially commenced its public funds repayment process soon thereafter. In February 2013, the Bank released a document entitled, 'Aozora Bank's Business Model - Aiming to become "Primary Secondary Bank: Another Reliable Partner" and since that time has been operating within the framework of that Business Model.

The Bank's share price has  steadily increased based on a number of factors. Assuming no significant change to valuations in the coming months, the implied value of the Bank's preferred stock would be expected to exceed the amount of remaining public funds owed.

Conditions for an early lump-sum repayment of public funds appear likely to be satisfied; as a result, Aozora intends to fully repay its remaining public funds, once it has obtained approval from the regulatory authorities, while giving appropriate consideration to its financial soundness as well as stability in the market.

Aozora is well aware of the importance of maintaining its soundness and social responsibilities as a bank that successfully recovered through the use of public funds.

Management will continue putting first priority on its risk management framework as well as the maintenance of the Bank's soundness as a financial institution in order to properly respond to internal and external environmental changes.

The revised Business Revitalization Plan includes a reporting on: 1) the Bank's advantages since its establishment which have developed into "4 Focuses" in the current Business Model; 2) the outcome of the initiatives based on the Bank's advantages which may have been maintained through the use of public funds; and 3) the future direction of the Business Model to support a sustainable improvement in corporate value.

All executive officers and employees of the Bank will make every effort to further develop the Bank's differentiated and specialized Business Model, aimed at becoming a truly trusted 'Primary Secondary Bank: Another Reliable Partner' for its customers and other stakeholders and continuously improving its corporate value. In that way, Aozora expects to continue proactively contributing to the economic and social development of Japan.