SMBC Sells Over $1.5 Billion Investment Grade Loans to Apollo

Sumitomo Mitsui Banking Corp. has sold a portfolio of over $1.5 billion performing loans in Asia Pacific to Apollo Global Management, according to people familiar with the matter.

The Japanese bank initiated the sale of the portfolio, which comprises Asia Pacific investment grade names, to free up capital and cut its risk-weighted assets, the people said, who asked not to be identified discussing private matters. Some of the investments require high capital, but generate low returns, one of the people said.