By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., July 7 – Sumitomo Mitsui Financial Group, Inc. sold $1 billion of 6.184% subordinated notes due July 13, 2043 (A2/BBB+) at par, or at a spread of 195 basis points to Treasuries, according to an FWP filed with the Securities and Exchange Commission regarding the Thursday sale.
Price talk was revised into the Treasuries plus 220 bps area, revised from initial talk in the Treasuries plus 225 bps area.
The notes will be non-redeemable except for taxation events or regulatory reasons.
If a non-viability event occurs, the subordinated notes will be subject to a write-down and the notes will be canceled.
SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are listed as bookrunners..
Proceeds will be used to extend a subordinated loan, intended to qualify as tier 2 capital and total loss-absorbing capital. 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: | $1 billion
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| Issue: | Subordinated notes
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| Maturity: | July 13, 2043
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| Bookrunners: | SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | BNP Paribas, BofA Securities, Inc., Nomura Securities International, Inc., Barclays, Daiwa Capital Markets America Inc. and UBS Securities LLC
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Davis Polk & Wardwell LLP and Nagashima Ohno & Tsunematsu
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| Counsel to bookrunners: | Simpson Thacher & Bartlett LLP
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| Coupon: | 6.184%
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| Price: | Par
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| Yield: | 6.184%
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| Spread: | Treasuries plus 195 bps
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| Call features: | Non-callable
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| Trade date: | July 6
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| Settlement date: | July 13
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| Ratings: | Moody’s: A2
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| S&P: BBB+
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| Price talk: | Treasuries plus 225 bps area
|
| Cusip: | 86562MCY4
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