Sumitomo Mitsui Financial Group issued 6.950% perpetual subordinated notes on September 10, with interest payments beginning December 5, 2026. Investors face a security with no fixed maturity, a rate reset in 2036, subordination, and provisions allowing interest cancellation or principal write-down.

Key Highlights

  • The first interest payment will equal U.S.$16.41 per $1,000 of original principal amount.
  • The rate will reset on December 5, 2036, using the applicable U.S. Treasury Rate plus a 2.143% margin.
  • Certain interest payments may face Japanese income-tax Withholding at 15.315%, subject to stated conditions.

Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG) issued 6.950% perpetual subordinated notes on September 10, 2026.

Perpetual Notes Set Coupon and Reset Terms

Interest will be paid twice a year on June 5 and December 5, beginning December 5, 2026. The initial 6.950% annual rate applies until December 5, 2036. On that date, and every five years afterward, the rate will reset to the applicable U.S. Treasury Rate plus a 2.143% annual margin. The notes are direct and unsecured obligations of Sumitomo Mitsui Financial Group. They rank equally among themselves and at least equally with the group’s other indebtedness subordinated to senior indebtedness. The terms allow for going-concern write-downs, write-down and cancellation, cancellation of interest payments and other subordination-related provisions. Principal, interest and additional amounts are payable in U.S. dollars through The Depository Trust Company. Payments to certain holders may be subject to Japanese income tax at 15.315%, changing to 15.15% on or after January 1, 2048, subject to Japanese tax-law changes.