MUFG Sells ¥200bn of Perpetual Bonds That Can Be Written Down to Almost Nothing
MUFG priced ¥200bn of perpetual bonds this week that pay fixed coupons of 3.311% and 4.072% before floating over yen Tibor, but the fine print lets the bank cancel principal outright, not merely defer it, if its core capital ratio drops below 5.125%, with recovery never guaranteed.