AT1 Bond Sales Start Up Again One Month After Market Wipeout

The market for Additional Tier 1 bonds is beginning to reopen just weeks after Credit Suisse Group AG’s collapse set off a global fire sale of the debt.

Sumitomo Mitsui Financial Group Inc. sold 140 billion yen ($1 billion) of AT1 notes Wednesday, the first major global lender to tap the market since Swiss regulators wiped out more than $17 billion of the risky debt as part of Credit Suisse’s forced takeover by UBS Group AG.

The offering is one of the largest yen corporate-bond sales this year, and suggests yield-starved Japanese investors are willing to look beyond strains in ...