SMFG: First Japan bank to sell AT1 bonds

Big move: People walk past the Sumitomo Mitsui Banking Corp headquarters in Tokyo. The terms for the AT1 bonds are seen as being ‘reasonably good’. — Bloomberg

TOKYO: Sumitomo Mitsui Financial Group (SMFG) has priced US$1.04bil (RM4.6bil) of additional Tier-1 (AT1) debt, becoming the first major Japanese bank to sell them since the value of similar bonds issued by Credit Suisse was wiped out.

SMFG priced the bonds in two tranches: 89 billion yen (US$662.5mil or RM2.9bil) five-year notes, and 51 billion yen (RM1.7bil) 10-year bonds, whose terms market players said were attractive.