Mitsubishi UFJ Financial Group Inc. raised 570 billion yen ($4 billion) worth of debt in what is Japan’s biggest yen bond deal this year.
(Bloomberg) — Mitsubishi UFJ Financial Group Inc. raised 570 billion yen ($4 billion) worth of debt in what is Japan’s biggest yen bond deal this year.
With yields rising, the lender offered a coupon of 2.127% on the perpetual non-callable 10-year and one-month Additional Tier 1 bonds, the underwriter said. That’s the highest coupon on such notes for the bank since 2015, according to Bloomberg-compiled data.
Friday’s deal marks the second offering of AT1 bonds in Japan by a major bank since March, when Credit Suisse Group AG’s contingent convertible bonds got written down by the Swiss regulator as part of its shotgun marriage to UBS Group AG. That was the biggest loss for the market to date.
MUFG’s sale comes against a backdrop of a rebound in AT1s, and is also a reminder of Japan’s unique position, with years of ultra-low interest rates fueling demand for higher-yielding assets. The deal also includes a total loss-absorbing capacity tranche.
Japan’s largest bond deal was Nippon Telegraph & Telephone Corp.’s 1 trillion yen offering in 2020.
–With assistance from Finbarr Flynn.
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