GTLP-SMBC (IFC-37978)

Regions
  • World
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 22, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Sumitomo Mitsui Banking Corporation
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 1,000.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Feb 8, 2016


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Project Description

According to IFC website, The proposed project falls under the Global Trade Liquidity Program, an innovative and well received trade finance program launched by the International Finance Corporation in 2009. GTLP provides liquidity or guarantees to global or regional banks with large financial institution networks. Through GTLP, banks are able to grow their credit limits, manage risk, and support trade in the emerging markets. The proposed project involves establishing a funded risk sharing facility with Sumitomo Mitsui Banking Corporation for up to US$1.0 billion to share the risk on a portfolio of emerging market issuing banks.

The facility is expected to have the following development impacts:
1. Increased access to finance: The project will increase access to finance for the Emerging Market importers and exporters. Improved availability of credit is expected to benefit producers and importers, including SMEs) along the value chain and therefore support growth, sustain employment, and encourage the generation of higher incomes.
2. Strong demonstration effect through partnership with a major international bank and by mobilizing other program participants to support trade finance, the Project will have a strong demonstration effect by encouraging greater local/regional bank participation in EM trade finance which will increase access to finance for importers and exporters.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

SMBC was established in April 2001 through the merger of two leading banks: The Sakura Bank, Limited and The Sumitomo Bank, Limited. It is a wholly owned subsidiary (and the core unit) of the Sumitomo Mitsui Financial Group, a financial conglomerate including other financial services such as deposit taking, lending, securities retail sales and trading, securities investment, funds transfers, foreign exchange, insourcing of financial futures transactions, corporate bond trustee and custody services, trust bank business, investment trust sales, securities intermediary business, retail sales of insurance products, and other credit related businesses.

SMBC is one of Japan’s leading banks with an extensive network domestically and growing international presence. The Bank has 441 branches/offices in Japan (excluding subbranches and agencies), 17 overseas branches (excluding subbranches and representative offices) globally, and over 28,000 employees.

As of September 30, 2015, the Bank had total assets of JPY156,487.5 billion, of which total loans constituted 44% or JPY68,796.9 billion. Total deposits equaled JPY92,002.9 billion and total equity of JPY6,313.2 billion at the end of the period. It has a relatively strong liquidity position and good credit quality. While it has a significant track record in Asia with a dominant position in Japanese consumer and corporate finance, its strategy is to expand its global presence and customer base.

Contact Information

Philip Janoff
Email Address: Philip_Janoff@smbcgroup.com
Global Trade Finance Department
Sumitomo Mitsui Banking Corporation
277 Park Avenue, New York, NY 10172

Jun Otsubo
Email Address: Jun_Otsubo@smbcgroup.com
Global Trade Finance Department
Sumitomo Mitsui Banking Corporation
277 Park Avenue, New York, NY 10172

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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