Sumitomo Mitsui Trust Bank offers €500 million two-year green bonds at Euribor plus 50 bps

By Susanna Moon

Chicago, Sept. 18 – Sumitomo Mitsui Trust Bank, Ltd. plans to price €500 million of two-year senior green bonds (expected A1/A) with a coupon of Euribor plus 50 basis points, according to a market source.

The spread has been set at the discount margin plus 25 bps, tight of guidance that was at the discount margin plus 30 bps.

The books are in excess of €2.3 billion, growing from more than €2.2 billion at open.

Allocations and pricing are expected to follow in the afternoon.

Initial price talk was in the Euribor plus 40 bps area.

Proceeds will be used for financing or refinancing environmentally related projects.

The bookrunners are BNP Paribas (bill and deliver), BNP Paribas and BofA Merrill Lynch as joint green structuring agents, Credit Agricole CIB, Goldman Sachs and Daiwa.

As announced Sept. 4, the bank had planned a series of fixed income investor meetings in Europe during the week beginning Sept. 10 for its planned euro-denominated benchmark short-dated senior green bonds.

The notes will be issued under Regulation S only.

Sumitomo is a bank based in Tokyo.

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