Japan’s SMFG plans to go ahead with AT1 bond issuance: source

SUMITOMO Mitsui Financial Group (SMFG) plans to raise about 140 billion yen (S$1.4 billion) by issuing Additional Tier-1 (AT1) debt, a person familiar with the matter said.

The person declined to be identified as the information is not public.

SMFG plans to decide the terms of the debt on Wednesday, the person said.

Domestic peer Mitsubishi UFJ Financial Group 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. REUTERS