Sumitomo Mitsui Financial Group (SMFG) is participating in a significant financing arrangement for Nippon Steel Corporation, as announced on July 3, 2025. Nippon Steel will raise 800 billion yen, equivalent to approximately $5.6 billion, through two subordinated loans to partially fund its $14.9 billion acquisition of U.S. Steel.
SMFG, along with Mitsubishi UFJ Financial Group, Mizuho Financial Group, Sumitomo Mitsui Trust Group, and Development Bank of Japan, will cover a 500 billion yen subordinated loan. This portion of the financing is expected to be finalized by September 18, and will partially repay a 2 trillion yen bridge loan secured in June.
SMFG's involvement in this large-scale corporate financing deal highlights its role as a major lender in significant M&A transactions. This participation contributes to the company's wholesale banking revenue and reinforces its position in supporting major industrial clients.
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