Mitsubishi Corporation ¥200 billion hybrid bond issue

Overview:

• Mitsubishi Corporation has issued ¥200 billion in hybrid bonds.
• The issue consisted of three tranches of step-up callable subordinated bonds.
• The tranches are made up of ¥68 billion three month ¥ Libor+1% notes; ¥92 billion 1.31% notes; and ¥40 billion 1.68% notes.
• Mitsubishi UFJ Morgan Stanley Securities acted as bookrunner. Mizuho Securities, SMBC Nikko Securities, Nomura Securities and Daiwa Securities acted as co-managers.
• The deal is thought to be the first bond issue in the Japanese domestic market to use the so called 'pot system', where investors’ information is passed from the underwriters to the issuer unless the investors opt out.
• In addition no replacement covenant was provided in the terms and conditions. It was instead disclosed in the prospectus.
• The deal was the first of a number of hybrid bond issues by Mitsubishi and its subsidiaries.

Sam Duke - Editor