Shinsei Bank Ltd. plans to repurchase and cancel treasury shares as it looks to raise capital to repay public funds.

The bank will repurchase up to 13 million of its own common shares for up to ¥13 billion. It will buy back the shares between May 14 and Nov. 14.

The lender said that through the buy back, it aims to increase the value of its shares.

In addition, Shinsei Bank will cancel 16 million common shares on May 18 via a reduction from capital surplus.

As of May 11, US$1 was equivalent to ¥109.40.