Japanese bank SMFG first to issue AT1s after Credit Suisse wipeout

$1bn worth of bonds

Japanese global bank Sumitomo Mitsui Financial Group has sold $1bn worth of additional tier-1 bonds today (19 April).

In a regulatory filing on the Japan Exchange Group, SMFG said it had sold the bonds in two batches - ¥89bn five-year notes and ¥51bn ten-year bonds. The coupon rate for the five-year note is 1.9% for the first five years and two months. Similar bonds issued by the bank in December had an initial coupon of 1.5%. What are AT1 bonds and why is Credit Suisse's $17bn wipe-out controversial? The ten-year bond has a coupon of 2.2% for the first ten years and two months, compared with 1.7% for the ones sold in December. SMFG has become the first global bank to issue AT1 bonds since Cred...