SMBC Sells $2 Billion in Dollar Bonds as Foreign Loans Expand

Sumitomo Mitsui Financial Group Inc. (8316) sold $2 billion of dollar-denominated debt as Japan’s second- largest bank seeks to expand lending abroad.

The bank’s Sumitomo Mitsui Banking Corp. unit issued $500 million of 3 percent, 10-year bonds that yield 117 basis points more than similar-maturity Treasuries, and $750 million portions of 0.9 percent, three-year notes at a 58 basis-point spread and 1.5 percent, five-year securities at 77, according to data compiled by Bloomberg.

President Koichi Miyata said in a Dec. 19 interview that dollar-denominated debt issuance by the company’s lending unit may reach $4.5 billion this year. The bank is increasing lending overseas as deflation and economic contraction damp credit demand and loan profitability at home.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.