SMFG Tests AT1 Appetite in First Major Deal After Credit Suisse

Sumitomo Mitsui Financial Group Inc. has started sounding out investors on pricing levels for a planned Additional Tier 1 bond sale, in what may be the first such deal by a major global bank since writedowns at Credit Suisse Group AG.

The riskier bank notes from the Japanese lender may carry a coupon as high as about 2.2%, based on preliminary guidance provided to investors, according to people familiar with the matter, who asked not to be identified because the matter is private.

Financial authorities regard SMFG as a global systemically important bank, and none of that rank ...