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SMBC Launches Sustainability-Linked Loan for Overseas Japanese CustomersSumitomo Mitsui Banking Corporation ("SMBC") (President and Group CEO: Makoto Takashima) announced today the launch of Sustainability-Linked Loan ("SLL") financing for its overseas Japanese customer's ESG (?1) and SDGs (?2) related activities. The objective of SLLs is to promote and support environmentally and socially beneficial economic activities by linking corporate loan terms with a customer's performance against mutually-agreed, sustainability performance targets ("SPTs") consistent with a customer's sustainability strategy. The objective of the SLL is to incentivize customers to improve their sustainability performance. SMBC arranges SLLs in accordance with the Sustainability-Linked Loan Principles ("SLLPs") published by the Loan Market Association ("LMA") (?3), Loan Syndications and Trading Association ("LSTA") (?4) and Asia Pacific Loan Market Association ("APLMA") (?5). The first SLL financing was extended to Bridgestone Americas, Inc. and closed by SMBC as sole Arranger, Administrative Agent and Sustainability Coordinator on January 31, 2021. This is the first SLL financing arranged by SMBC for an overseas Japanese customer. The loan was successfully syndicated amongst a club of banks and features a sustainability-linked pricing adjustment mechanism tied to Bridgestone Corporation's ESG evaluation scores as assessed by Sustainalytics (CEO: Michael Jantzi) (?6) and FTSE Russell (CEO: Waqas Samad) (?7). The financing was structured by SMBC in accordance with the SLLPs and pertinent market guidance. As announced on April 13, 2020, SMBC Group including SMBC has established "SMBC Group GREEN × GLOBE 2030", a ten-year plan that extends to 2030 based on the Sustainability Statement. Particularly, in order to take actions in solving environmental issues, a target of JPY 10 trillion has been set for Green Finance to be achieved by the end of FY2029. Based on the Sustainability Statement, SMBC will engage and act together with customers and other stakeholders to contribute to the global transformation into a better society.
(?1) ESG
(?2) SDGs
(?3) LMA
(?4) LSTA
(?5) APLMA
(?6) Sustainalytics
(?7) FTSE Russell
About SMBC Group SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 130 offices and 85,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG's shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges. As of September 30, 2020, its total assets were $2.13 trillion. In the Americas, SMBC Group has a presence in the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization's extensive global network. The Group's operating companies in the Americas include Sumitomo Mitsui Banking Corporation (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC Rail Services LLC, Manufacturers Bank, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd. About Bridgestone Americas, Inc. Nashville, Tennessee-based Bridgestone Americas, Inc. is a subsidiary of Bridgestone Corporation, a global leader providing sustainable mobility and advanced solutions. Bridgestone Americas develops, manufactures, and markets a diverse portfolio of original equipment and replacement tires, tire-centric solutions, mobility solutions, and other rubber-associated and diversified products that deliver social value and customer value. Guided by its global corporate social responsibility commitment, Our Way to Serve, Bridgestone is dedicated to shaping a sustainable future of mobility and improving the way people move, live, work and play.
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