Acquisition of European Loan Portfolio from GE(1/1)
June 30, 2015
Sumitomo Mitsui Banking Corporation
Acquisition of European Loan Portfolio from GE
Sumitomo
Mitsui Banking Corporation (“SMBC”; President: Takeshi Kunibe), through its
subsidiary Sumitomo Mitsui Banking Corporation Europe Limited, has reached an
agreement with GE Corporate Finance Bank SCA and affiliates of GE Capital, a
financial arm of General Electric Company (“GE”; Chairman & CEO: Jeffrey
Robert Immelt), on the terms of its offer for a portfolio of loans to European
companies, and related business.
The credit portfolio (approximately USD2.2 billion, as
of May 31st, 2015) is composed of loans for acquisition finance, primarily
sponsored by private equity funds, which are extended to approximately 100
companies domiciled in European countries.
SMBC and GE
will cooperate to ensure a smooth transfer of the assets, and expect to
complete the transaction around the middle of this fiscal year.
This deal will accelerate SMBC’s continuous efforts to develop
a more diversified portfolio of credit assets with higher quality and
profitability. With the acquisition of this portfolio, SMBC will continue to
strengthen and broaden its client base in the European market. SMBC aims to
further expand its business whilst diversifying its business portfolio by
continuing to provide services and support in fields such as trade finance and
cross border M&A transactions among clients both in European and Asian
countries including Japan.
