A converter arrangement for an AC system includes a phase leg including a first sub-converter, a second sub-converter, an IPT interface configured for connecting the first and second sub-converters with a phase line A, and at least one DC bus connected to the first and second sub-converters. The first sub-converter is connected in parallel with the second sub-converter between the DC bus and the IPT interface. Each of the first and second sub-converters includes a chain-link converter connected to the IPT interface and including a plurality of converter cells connected in series with each other, and a common DC link multilevel converter connected to the DC bus and in series with the chain-link converter.