TOKYO, April 3 (Reuters) - Mitsubishi UFJ Financial
Group Inc will postpone the issuance of Additional
Tier-1 (AT1) bonds to mid-May or later from late April, a
spokesperson said on Monday, after the Swiss decision to wipe
out Credit Suisse bonds rattled the market.
Mitsubishi UFJ decided on the postponement taking into
account investor appetite and market conditions, the
spokesperson said. He declined to comment on the planned issue
amount.
Sources have said Mitsubishi UFJ and Sumitomo Mitsui
Financial Group Inc , may put April issuance on hold
amid the volatility. AT1 bonds - a $275 billion sector known as "contingent
convertibles" or "CoCo" bonds - can be converted into equity or
written off if a bank's capital level falls below a certain
threshold.
As part of the rescue of Credit Suisse by its rival
UBS , Swiss regulator FINMA determined that Credit
Suisse's AT1 bonds with a notional value of 16 billion francs
($17.35 billion) would be wiped out, a decision that stunned
global credit markets and angered many holders.
(Reporting by Ritsuko Shimizu and Makiko Yamazaki; Editing by
Varun H K)
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