SMFG $2 billion senior notes offering
Davis Polk advised Sumitomo Mitsui Financial Group, Inc. on its SEC-registered takedown offering of senior total loss-absorbing capacity (TLAC) notes, which consisted of $500 million aggregate principal amount of SOFR-linked senior floating rate notes due 2027, $500 million aggregate principal amount of 2.174% senior notes due 2027, $500 million aggregate principal amount of 2.472% senior notes due 2029 and $500 million aggregate principal amount of 3.050% senior notes due 2042. The net proceeds of the 2029 fixed rate notes will be allocated toward financing, in whole or in part, existing and future qualifying environmentally related projects, or “Eligible Green Projects,” as defined under the Green Bond Framework adopted by SMFG and Sumitomo Mitsui Banking Corporation, SMFG’s wholly owned subsidiary.
The notes are structured to count as TLAC under the Japanese TLAC regulations.
SMFG is the holding company for one of the three largest banking groups in Japan. Sumitomo Mitsui Banking Corporation is one of the world’s largest commercial banks by assets.
The Davis Polk team included partner Jon Gray and counsel Christopher Kodama. Counsel Alon Gurfinkel and associate Omer Harel provided tax advice. Members of the Davis Polk team are based in the Tokyo and London offices.