By Devika Patel
Knoxville, Tenn., July 9 – Sumitomo Mitsui Financial Group Inc. offered further details about a $4.5 billion offering of fixed-rate senior notes (A1/A-) that priced in two tranches on the tight side of guidance on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $2 billion of 2.696% five-year notes at a spread of Treasuries plus 85 basis points. These notes priced at par to yield 2.696%.
Sumitomo Mitsui Financial priced $2.5 billion of 3.04% 10-year notes with a Treasuries plus 100 bps spread. These notes priced at par to yield 3.04%.
SMBC Nikko Securities America Inc., Goldman Sachs & Co., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
The notes are non-callable.
Proceeds will be used to extend senior unsecured loans to subsidiary Sumitomo Mitsui Banking Corp., which will use the proceeds of the loans for general corporate purposes.
The banking and financial company is based in Tokyo.
| Issuer: | Sumitomo Mitsui Financial Group Inc.
|
| Amount: | $4.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | SMBC Nikko Securities America Inc., Goldman Sachs & Co., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Senior co-managers: | Barclays, BofA Securities, Inc. and Nomura Securities International, Inc.
|
| Co-managers: | Daiwa Capital Markets America Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Lloyds Securities Inc., Natixis Securities Americas LLC and TD Securities (USA) LLC
|
| Trade date: | July 8
|
| Settlement date: | July 16
|
| Ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $2 billion
|
| Maturity: | July 16, 2024
|
| Coupon: | 2.696%
|
| Price: | Par
|
| Yield: | 2.696%
|
| Spread: | Treasuries plus 85 bps
|
| Call feature: | None
|
| Price guidance: | Treasuries plus 90 bps area, plus or minus 5 bps; initial talk at Treasuries plus 105 bps area
|
|
|
| Ten-year notes
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| Amount: | $2.5 billion
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| Maturity: | July 16, 2029
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| Coupon: | 3.04%
|
| Spread: | Treasuries plus 100 bps
|
| Price: | Par
|
| Yield: | 3.04%
|
| Call feature: | None
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps; initial talk at Treasuries plus 120 bps area
|
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