Chicago, Jan. 4 – Sumitomo Mitsui Financial Group, Inc. sold $5.8 billion of notes in five parts (A1/A-) on Tuesday, according to a 424B2 filing with the Securities and Exchange Commission.
The deal broke down into one tranche of senior floating-rate notes due 2026 and four fixed-rate notes with tenors of three years to 10 years.
Both the floating-rate tranche and one tranche of the fixed-rate notes have a three-year tenor.
The bank sold $300 million of floating-rate notes and $1.5 billion of 5.464% senior notes due 2026. Both notes priced at par, with the spread on the fixed-rate notes 130 basis points above Treasuries.
The floating-rate notes will have interest based on SOFR plus 143 bps, payable quarterly.
The issuer also priced $1.5 billion of 5.52% notes with a five-year tenor at par. The spread was 130 bps to Treasuries.
Seven-year notes priced out as $1 billion of 5.71% notes, also at par. Spread pricing came at 160 bps to the benchmark Treasury.
The longest tranche priced as $1.5 billion of 5.766% notes with a 10-year tenor, at par. The spread was 200 bps to the benchmark Treasury.
Except for taxation reasons, none of the tranches are callable.
SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Jefferies LLC are listed as joint lead managers and joint bookrunners.
Proceeds will be used to extend unsecured loans in line with total loss-absorbing capital standards. Proceeds from the loans will be used for general corporate purposes.
The notes will be listed on the Luxembourg Stock Exchange.
The bank holding company for SMBC is based in Tokyo.
| Issuer: | Sumitomo Mitsui Financial Group, Inc.
|
| Amount: | $5.8 billion
|
| Issue: | Senior notes
|
| Bookrunners: | SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Jefferies LLC
|
| Co-managers: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Nomura Securities International, Inc., Daiwa Capital Markets America Inc., HSBC Securities (USA) Inc., Academy Securities, Inc., CastleOak Securities, LP, Samuel A. Ramirez & Co., Inc and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Davis Polk & Wardwell LLP and Nagashima Ohno & Tsunematsu
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Call features: | Non-callable
|
| Trade date: | Jan. 3
|
| Settlement date: | Jan. 13
|
| Ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 2026 floaters
|
| Amount: | $300 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Jan. 13, 2026
|
| Coupon: | SOFR plus 143 bps
|
| Price: | Par
|
| Yield: | SOFR plus 143 bps
|
| Cusip: | 86562MCU2
|
|
|
| 2026 fixed-rate notes
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 13, 2026
|
| Coupon: | 5.464%
|
| Price: | Par
|
| Yield: | 5.464%
|
| Spread: | Treasuries plus 130 bps
|
| Cusip: | 86562MCT5
|
|
|
| Notes due 2028
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Maturity: | Jan. 13, 2028
|
| Coupon: | 5.52%
|
| Price: | Par
|
| Yield: | 5.52%
|
| Spread: | Treasuries plus 160 bps
|
| Cusip: | 86562MCR9
|
|
|
| Notes due 2030
|
| Amount: | $1 billion
|
| Maturity: | Jan. 13, 2030
|
| Coupon: | 5.71%
|
| Price: | Par
|
| Yield: | 5.71%
|
| Spread: | Treasuries plus 185 bps
|
| Cusip: | 86562MCW8
|
|
|
| Notes due 2033
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| Amount: | $1.5 billion
|
| Maturity: | Jan. 13, 2033
|
| Coupon: | 5.766%
|
| Price: | Par
|
| Yield: | 5.766%
|
| Spread: | Treasuries plus 200 bps
|
| Cusip: | 86562MCS7
|
|
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