KYB Corporation (TSE:7242) announced it has entered into a stock subscription agreement for private placement of 125 class A preferred stock at an issue price of ¥100,000,000 per share for gross proceeds of ¥12,500,000,000 on May 13, 2021. The transaction will include participation from new investors including Mizuho Bank, Ltd. for 35 shares for ¥3,500,000,000, Development Bank of Japan Inc. for 25 shares for ¥2,500,000,000, Meiji Yasuda Life Insurance Company for 15 shares for ¥1,500,000,000 and other investors. The company will raise funding through third-party allotment.

The transaction was approved by the board of directors of the company and is subject to shareholder's approval. The company expects to close the transaction on June 28, 2021. The company has paid ¥300,000,000 issuance cost and net proceeds of ¥12,200,000,000.