Mitsubishi UFJ Financial Group (TYO:8306) priced 200 billion yen in perpetual additional Tier 1 bonds at spreads 5 basis points tighter than its April sale, reflecting strong investor demand for subordinated debt, Bloomberg News reported Friday.
The five-year-four-month and 10-year-four-month callable bonds were priced at 100 and 105 basis points over the government bond curve, respectively, the report said.
The tighter pricing comes as spreads on senior debt from highly rated Japanese issuers have widened. Japanese corporate yen bond issuance exceeded 10.7 trillion yen as of Sept. 11, up more than 10% year on year and a record for the period.
Shares of Mitsubishi UFJ Financial Group rose more than 1% in recent trade.
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