Japan's MUFG to float $2bn in AT1 bonds

Megabank responds to investor demand for controversial debt instrument

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Mitsubishi UFJ Financial Group delayed issuing fresh AT1 bonds following the collapse of Credit Suisse. (Photo by Yo Inoue)

YUKI NAKAMURA, Nikkei staff writer

TOKYO -- Mitsubishi UFJ Financial Group, Japan's leading bank, will issue 330 billion yen ($2.3 billion) in Additional Tier 1 bonds, roughly triple the amount considered earlier, in response to growing investor demand.

MUFG formally sets the terms of the float Friday. The yen-denominated AT1 bonds will be issued with five- and 10-year call options.

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