TOKYO, April 19 (Reuters) - Sumitomo Mitsui Financial
Group (SMFG) will issue a total 140 billion yen ($1.04
billion) in additional tier-1 (AT1) debt, pricing them to yield
171 basis points above 5-year Japanese government bonds (JGBs)
after the initial period.
One of the issuances, for 89 billion yen, would carry a
coupon rate of 1.879% for the initial five years and two-month
period, a regulatory filing showed. Another 51 billion yen would
yield 2.180% for the first 10 years and two months.
Domestic peer Mitsubishi UFJ Financial Group Inc said earlier this month it would put AT1 debt issuance on hold
until mid-May at the earliest, pointing to weak investor demand
and market conditions.
As part of the rescue of Credit Suisse by its rival UBS , Swiss regulator FINMA determined that Credit Suisse's AT1 bonds would be wiped out, a decision that rocked
global credit markets.
($1 = 134.3700 yen)
(Reporting by Kaori Kaneko; Editing by Rashmi Aich)
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