ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Finance

Mitsubishi UFJ to launch coronavirus retail bonds worth $1.42bn

Japanese financial group says they will be world's first to target individuals

Mitsubishi UFJ Financial Group will issue coronavirus corporate bonds worth around $1.42 billion for retail investors. (Source photos by Nikkei)

TOKYO -- Mitsubishi UFJ Financial Group will issue corporate bonds worth around 150 billion yen ($1.42 billion) for retail investors by the end of September, Nikkei has learned. The funds raised will be used as loans to small and midsize companies suffering from falling sales due to the coronavirus pandemic, hospitals treating COVID-19 patients and pharmaceutical companies.

Global debt issuance in response to the coronavirus totals about $318 billion, according to Mitsubishi UFJ. But such bonds have been issued to institutional investors while Mitsubishi UFJ says it will be the world's first bank to issue them for retail investors.

Mitsubishi UFJ says it decided to issue the bonds as it has received numerous inquiries from retail investors after issuing coronavirus bonds for institutional investors in June.

The term of the bonds will be 10 years and four months. Mitsubishi UFJ will issue two types of corporate bonds: those to be redeemed at maturity and those to be redeemed after five years and four months at the discretion of the financial group.

Yields for coronavirus bonds will be higher than those for Mitsubishi UFJ's other corporate bonds as they are subordinated bonds, which rank after other debt if the company falls into liquidation or bankruptcy.

Mitsubishi UFJ hopes to attract retail investors who are having difficulty finding a place to park their money as interest rates remain at ultra-low levels. The yields for the first slot of 10-year, variable interest-rate Japanese government bonds for retail investors have remained sluggish at 0.05%.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more