CISI FIN Acquires US$15.99 Million MUFG Perpetual Subordinated Notes in Discloseable Deal

Bulletin Express
10/23

China Industrial Securities International Financial Group Limited (CISI FIN, 06058.HK) disclosed that its indirect wholly owned subsidiary, CISI Investment Limited, purchased US$15.99 million principal amount of 8.2% fixed-rate resetting perpetual subordinated securities issued by Mitsubishi UFJ Financial Group, Inc. (MUFG) between 15 June and 21 October 2026. The open-market transactions were executed for a total cash consideration of approximately US$17.36 million (HK$136.31 million), funded entirely through internal resources.

The MUFG perpetual securities, originally issued in a US$750 million tranche at par, carry a fixed coupon of 8.2% per annum until 15 January 2029. Thereafter, the rate will reset every five years to the prevailing U.S. Treasury rate plus 329.4 basis points. The notes are listed on the Luxembourg Stock Exchange’s Euro MTF Market and have no scheduled maturity.

The latest purchase on 21 October 2026 involved US$5.79 million principal for US$6.19 million (HK$48.61 million). When aggregated with three earlier purchases made on 15 June, 13 July and 16 July 2026 totalling US$10.20 million principal, CISI FIN’s cumulative holding reaches US$15.99 million.

Under Hong Kong Listing Rule 14.07, the cumulative size of the acquisitions pushes two percentage ratios above 5% but below 25%. Accordingly, the transactions are classified as discloseable, requiring public announcement but not shareholder approval.

Management cited portfolio diversification and the pursuit of stable returns within acceptable risk parameters as the rationale for the investment, noting alignment with the group’s broader strategy of allocating capital across a diversified mix of securities, funds and structured products.

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