Risk.net

Japan’s SMBC to launch ¥1 trillion balance sheet synthetic CLO

Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is preparing to launch its second balance sheet synthetic collateralised loan obligation on March 24, ahead of the fiscal year end, with a ¥1 trillion ($8.35 billion) transaction.

    • Mia Trinephi
  • LinkedIn  
  • Save this article
  • Print this page  
The bank is issuing ¥40 billion of floating-rate credit-linked notes due in November 2004 and ¥63 billion of senior credit default swaps rated Aaa. The transaction is referenced on ¥1 trillion of loans extended by SMBC to small and medium-sized companies. The senior credit swap is rated Aaa by Moody’s Investors Service, while the ¥20 billion of Class B notes are rated A2 and the ¥20 billion of Class C notes are rated Baa3.

The name of the special purpose vehicle, the super senior credit default swap tranch and the equity portion were not disclosed, but officials familiar with the transaction said the structure is very similar to SMBC’s Proton deal that closed in December.

The latest transaction is being arranged by Goldman Sachs, which also arranged the Proton deal with Daiwa Securities SMBC Europe, although Goldman Sachs didn’t confirm the mandate.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Copyright Infopro Digital Limited. All rights reserved.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@risk.net

Copyright Infopro Digital Limited. All rights reserved.

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@risk.net

More on Credit markets

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here