TOKYO – (COMMERCIAL THREAD) – Sumitomo Mitsui Banking Corporation (“SMBC”) (Group Chairman and CEO: Makoto Takashima) today announced the launch of sustainability loan financing (“SLL”) for ESGs (※ 1 ) and the SDGs (※) of its Japanese customers abroad 2) related activities.
The objective of SLLs is to promote and support environmentally and socially beneficial economic activities by linking the terms of business loans to a client’s performance against sustainability performance objectives (“SPT”). mutually agreed upon and compatible with a client’s sustainability strategy. The objective of SLL is to encourage customers to improve their performance in terms of sustainable development.
SMBC organizes SLLs in accordance with the Sustainability Lending Principles (“SLLP”) 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 organized by SMBC for a client Japanese abroad.
The loan has been successfully syndicated among a club of banks and has a sustainability-linked price adjustment mechanism linked to Bridgestone Corporation’s ESG rating 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 SLLP and relevant market guidance.
As announced on April 13, 2020, SMBC Group, including SMBC, has implemented “SMBC Group GREEN × GLOBE 2030”, a ten-year plan that extends until 2030 based on the Sustainable Development Declaration. In particular, in order to take action to address environmental issues, a target of 10 trillion yen has been set for green finance to be achieved by the end of fiscal 2029.
Based on the sustainability statement, SMBC will engage and act with customers and other stakeholders to contribute to the global transformation into a better society.
(※ 1) ESG
ESG stands for Environmental, Social, and Governance and indicates three key criteria to consider in order to conduct business in a sustainable and socially responsible manner. ESG is an area of growing interest, providing standards for a company’s operations that impact the environment, reflect its relationships, and govern the way the business is run.
(※ 2) SDGs
SDGs is the abbreviation for Sustainable Development Goals. 17 goals were adopted by 193 United Nations Member States at the United Nations General Assembly in September 2015 as part of the 2030 Agenda; a global action plan until 2030. The 17 goals and 169 targets address all countries and regions, not only emerging but also developed, to achieve by 2030 a world in which no one is left behind. relies on issues such as poverty, equality, education and the environment.
(※ 3) LMA
Based in London, LMA was established in 1996 to promote the expansion of the loan market in Europe, the Middle East and Africa. About 750 financial institutions from over 65 countries are members, including SMBC.
(※ 4) LSTA
Headquartered in New York, LSTA has been the leading advocate for the U.S. syndicated loan market since 1995, fostering cooperation and coordination among all players in the loan market, facilitating fair and equitable market principles, and inspiring the highest degree of confidence among investors in business loans. assets. SMBC is a member of LSTA.
(※ 5) APLMA
Based in Hong Kong and founded in 1998, APLMA is a non-profit trade association representing the interests of institutions active in the syndicated loan markets in the Asia-Pacific region. SMBC is a member of APLMA.
(※ 6) Sustainalytics
Sustainalytics is an independent responsible investment / ESG research and rating agency with a global research network. Based in Amsterdam, the Netherlands, Sustainalytics provides ESG data to over 700 owners and asset managers.
(※ 7) FTSE Russell
FTSE Russell, a wholly-owned subsidiary of the London Stock Exchange Group (LSEG), as a global index provider, has calculated thousands of indicators to measure and compare markets and asset classes, currently targeting 70 countries. FTSE Russell covers 98% of the global investment markets in more than one country.
About the SMBC Group
SMBC Group is a leading global financial group. Based 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 credit. The Group has more than 130 offices and 85,000 employees around the world 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 shares trade on the Tokyo, Nagoya and New York stock exchanges (NYSE: SMFG). As of September 30, 2020, its total assets were $ 2.13 trillion.
In the Americas, SMBC Group is present in the United States, Canada, Mexico, Brazil, Chile, Colombia and Peru. Building on the strength of SMBC Group’s capital 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. He connects a diverse clientele with local markets and the organization’s vast 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 SA and Sumitomo Mitsui Finance and Leasing Co., Ltd.
About Bridgestone Americas, Inc.
Bridgestone Americas, Inc., based in Nashville, Tennessee, is a subsidiary of Bridgestone Corporation, a global leader in sustainable mobility and advanced solutions. Bridgestone Americas develops, manufactures and markets a diverse portfolio of original and replacement equipment tires, tire-centric solutions, mobility solutions and other diverse and rubber-related products that deliver social value and customer value. Guided by its global commitment to corporate social responsibility, Our Way to Serve, Bridgestone is dedicated to shaping a sustainable future of mobility and improving the way people move, live, work and play.