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 (gSMBCh; 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 (gGEh; 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 SMBCfs 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.