The head office of JTB Corp. is seen in Tokyo. (Mainichi)

       TOKYO (Kyodo) -- JTB Corp. said Tuesday it will raise 30 billion yen ($271 mil.) on Sept. 30 to bolster its capital base dented by shrinking travel demand in the midst of the coronavirus pandemic.

       The major travel agency will raise the capital through a third-party allotment of preferred shares with a fund created by Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corp. -- which are JTB's main banks -- as well as the Development Bank of Japan.

       The new capital will be used for further digitalization of the company such as expanding online travel consultation services to better compete with internet-based travel agencies.

       Slumping travel demand in Japan and abroad forced JTB to post a net loss of 105.1 billion yen for the fiscal year ended in March, a reversal from a net profit of 1.6 billion yen a year earlier and the largest loss on record.

       In the travel industry, KNT-CT Holdings Co. had a capital injection of 40 billion yen from its parent company Kintetsu Group Holdings Co. and two other firms at the end of June.

       The capital increase via a third-party allotment of new shares helped KNT-CT Holdings, the parent of Kinki Nippon Tourist companies, overcome liabilities in excess of assets.

       Preferred shares, which are given priority over common stocks in receiving dividends but do not come with voting rights, are often used as a tool to boost a company's capital.

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