MUFG to offer high-yield debt for retail investors

Mitsubishi UFJ Financial Group (MUFG) is to issue JPY 100bn ($891m) in subordinated bonds aimed at retail investors in March, as it anticipates brisk demand as deposit rates drop; the bank will have the option to redeem the 10-year bonds as soon as the fifth year. Separately, MUFG will issue in March hundreds of billions of yen worth of loss-absorbing debt to comply with new regulatory rules aimed at systemically important banks, making it the first Japanese bank to do so.

TOKYO -- Mitsubishi UFJ Financial Group will issue 100 billion yen ($891 million) in subordinated bonds aimed at retail investors as soon as March, anticipating brisk demand as deposit rates sink.

The Japanese megabank will have the option to redeem the 10-year bonds as soon as the fifth year. The coupon, to be set Friday, likely will be between 0.1% and 0.5%. Subsidiary banks and brokerages will take orders of 1 million yen per unit starting Feb. 29.