Mitsubishi UFJ to Issue Japan's First 'Corona Bond'

Mitsubishi UFJ Financial Group headquarters located in Chiyoda-ku, Tokyo. Photo by Asahi Shimbun.

[Asia Economy Reporter Ki-min Lee] Mitsubishi UFJ Financial Group is planning to issue Japan's first coronavirus (COVID-19) related bonds. COVID bonds are issued to support the establishment of medical systems and corporate financing in response to COVID-19.

According to the Nihon Keizai Shimbun on the 11th, Mitsubishi UFJ has set a plan to issue 60 billion yen (approximately 680 billion KRW) worth of COVID bonds in early next month.

Mitsubishi UFJ is reportedly aiming to continuously issue additional bonds if it succeeds in issuing bonds for loans to general small and medium-sized enterprises struggling due to COVID-19. The additionally issued bonds are also expected to expand loans to medical institutions and pharmaceutical companies.

According to Mitsubishi UFJ's data, the total amount of COVID bond issuance worldwide has reached 40 billion dollars (approximately 49 trillion KRW) so far.

Public institutions such as the International Bank for Reconstruction and Development (IBRD) of the World Bank Group and the Nordic Investment Bank mainly issue these bonds.

Among private companies, the American pharmaceutical company Pfizer has issued COVID bonds worth 1.25 billion dollars (approximately 1.5 trillion KRW).

The Nihon Keizai Shimbun reported that Mitsubishi UFJ aims to attract funds from investors who prioritize Environmental, Social, and Governance (ESG) criteria, and will likely issue foreign currency-denominated COVID bonds primarily targeting overseas investors at first.

This content was produced with the assistance of AI translation services.