Press Room
June 12, 2015
Mitsubishi Corporation
Mitsubishi Corporation Issues Hybrid Bonds
Mitsubishi Corporation (MC) announced today that it priced Hybrid Bonds on the Japanese market with a three-tranche structure amounting to JPY 200 billion, which will represent the first-ever public Hybrid Bond offering by corporate issuers in the domestic market. This issue allows MC to reinforce its financial stability in a capital and cost efficient way. Hybrid Bonds will also afford MC to diversify its funding sources on the capital markets, and MC is willing to issue Hybrid Bonds regularly to develop and cultivate a new market for Hybrid Bonds in Japan.
Details of the Hybrid Bonds (“the Bonds”)
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Series Name
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First Series
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Second Series
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Third Series
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Principal Amount
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JPY 68 billion
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JPY 92 billion yen
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JPY 40 billion yen
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Coupon Rate*
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3-Month JPY Libor+1.00%
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1.31%
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1.68%
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Payment Date
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June 18, 2015
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Maturity Date
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June 18, 2075
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Call Provisions
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The First and Second Series of the Bonds are callable on June 18, 2020 and every coupon payment date thereafter at the discretion of MC.
The Third Series of the Bonds is callable on June 18, 2025 and every coupon payment date thereafter at the discretion of MC.
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Subordination
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In the event of liquidation, etc., the Bonds will be subordinated to all senior indebtedness of MC.
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Offering
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The Bonds will mainly be issued to institutional investors in domestic securities markets.
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Credit Ratings
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Rating and Investment Information, Inc. (R&I): A
Moody’s Investors Service: A3
Standard and Poor’s (S&P): A-
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Equity Credit
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The Bonds will be eligible for 50% equity treatment from above-mentioned three credit rating agencies.
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Book-runner and Co-Managers
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Sole book-runner: Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Co-Managers: Mizuho Securities Co., Ltd., SMBC Nikko Securities Inc.,
Nomura Securities Co., Ltd., Daiwa Securities Co. Ltd.
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(*)These Coupon Rates per annum are applicable during the period from the Payment Date to (but excluding) June 18, 2020 (for First and Second Series of the Bonds) and June 18, 2025 (for Third Series of the Bonds). There is a step-up coupon provision on all three Bonds on June 2025 and June 2040 (for First and Second Series of the Bonds) and June 2025 and June 2045 (for Third Series of the Bonds) respectively.
This announcement is intended as general information regarding the issuance of securities. This announcement is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). This announcement does not constitute or form a part of any offer of, or the solicitation of an offer to buy or subscribe for, securities in the United States or in any jurisdiction in which such offer or solicitation is unlawful. The securities have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act), absent registration or an exception from registration under the Securities Act. No public offering of the securities will be made in the United States.
Inquiry Recipient
Mitsubishi CorporationTelephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705
