Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank to issue bonds.

TOKYO, Feb. 9 Kyodo

The Bank of Tokyo-Mitsubishi UFJ said Monday it will issue subordinated bonds worth 200 billion yen for individual investors to strengthen its capital base.

Mizuho Corporate Bank will also issue its first subordinated bonds for individual investors worth about 100 billion yen, sources familiar with the matter said.

The Bank of Tokyo-Mitsubishi UFJ will accept subscription to the bond issue between Feb. 23 and March 12. The bonds carrying a maturity of eight years are planned to deliver annual interest of between 2.30 percent and 3.30 percent.

Its parent Mitsubishi UFJ Financial Group Inc. also plans to issue preferred subscription certificates for institutional investors.

Mizuho Corporate Bank's move will follow its parent Mizuho Financial Group Inc.'s procurement of 355 billion yen through preferred subscription certificates for institutional investors last year-end.

With the issue of the subordinated bonds, the capital adequacy ratio is expected to rise by 0.28 percentage point for Mizuho Corporate Bank and about 0.15 point for Mizuho Financial Group.

The bank will decide on Feb. 26 on the interest and issuance amount of the bond carrying a maturity of eight years, the sources said.