MUFG - Mitsubishi UFJ Financial said to delay AT1 debt issuance amid Credit Suisse fallout
2023-04-03 09:18:11 ET
Mitsubishi UFJ Financial Group ( MUFG ) ( OTCPK:MBFJF ) is one of the first banks to put off the issuance of Additional Tier-1 bonds after holders of Credit Suisse ( CS ) AT1s got wiped out, Reuters reported Monday, citing a spokesperson.
The Japanese lender took into account market conditions and investors' risk appetite before deciding to delay its AT1 debt issuance, now on hold until mid-May, the spokesperson told Reuters . The transaction was initially slated for late April.
As a condition of UBS Group's ( UBS ) government-brokered rescue of Credit Suisse ( CS ) last month, the Swiss government decided to write down $17B of risky AT1 debt to zero. That prompted U.S. bond investors to sue the Swiss government as equity holders are still set to recoup some of their funds.
About two weeks into the global banking crisis, Mitsubishi ( MUFG ) said it will invest in specialist credit investor AlbaCore.
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Mitsubishi UFJ Financial said to delay AT1 debt issuance amid Credit Suisse fallout