MUFG raises ¥570 billion in biggest bond deal this year with bumper coupon

Mitsubishi UFJ Financial Group has raised ¥570 billion ($4 billion) worth of debt in Japan’s biggest yen bond deal this year.

With yields rising, the lender offered a coupon of 2.127% on the perpetual noncallable 10-year and one-month Additional Tier 1 bonds, underwriter Mitsubishi UFJ Morgan Stanley Securities 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’s contingent convertible bonds got written down by the Swiss regulator as part of its shotgun marriage to UBS Group AG in the biggest loss for the market to date.