By Cristal Cody
Tupelo, Miss., Sept. 14 – Sumitomo Mitsui Financial Group Inc. priced $1.7 billion of notes in two tranches on Monday, including an add-on, according to a market source.
An $850 million reopening of the company’s 1.474% senior notes due July 8, 2025 (A1/A-) priced at a spread of Treasuries plus 75 basis points.
Initial price talk was in the Treasuries plus 100 bps area.
The notes were first priced in a $1.5 billion offering on June 29 at par to yield a spread of Treasuries plus 120 bps. The total outstanding is now $2.35 billion.
Sumitomo Mitsui Financial sold $850 million of 2.142% new 10-year subordinated notes (A2/BBB+) at a Treasuries plus 147 bps spread.
Initial price talk was in the 185 bps spread area.
SMBC Nikko Securities America Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and BofA Securities Inc. were bookrunners.
The notes are non-callable.
Proceeds from both issues will be used to extend unsecured loans to subsidiary Sumitomo Mitsui Banking Corp., which will use the proceeds for general corporate purposes.
The banking and financial company is based in Tokyo.
| Issuer: | Sumitomo Mitsui Financial Group Inc.
|
| Amount: | $1.7 billion
|
| Description: | Notes
|
| Bookrunners: | SMBC Nikko Securities America Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and BofA Securities Inc.
|
| Trade date: | Sept. 14
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $850 million reopening
|
| Description: | Senior notes
|
| Maturity: | July 8, 2025
|
| Coupon: | 1.474%
|
| Spread: | Treasuries plus 75 bps
|
| Call feature: | None
|
| Ratings: | Moody’s: A1
|
| S&P: A-
|
| Price guidance: | Treasuries plus 100 bps area
|
| Total outstanding: | $2.35 billion, including $1.5 billion of notes priced June 29 at par to yield a spread of Treasuries plus 120 bps
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Description: | Subordinated notes
|
| Maturity: | Sept. 23, 2030
|
| Coupon: | 2.142%
|
| Spread: | Treasuries plus 147 bps
|
| Call feature: | None
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Price guidance: | Treasuries plus 185 bps area
|
|
|
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