Sumitomo Mitsui Banking Corporation (SMBC) Group is providing Jefferies with approximately US$2.5 billion in new credit facilities as the firms develop their global strategic partnership.
These funds will be used for overall support and for collaborative efforts between the companies, including EMEA leveraged lending, US pre-IPO lending, and asset-backed securitisation.
SMBC has also expanded its equity ownership of Jefferies from 15% to up to 20%, maintaining a less than 5% voting interest, as the companies further their strategic alliance.
The companies have also shared plans to expand their coverage of larger sponsors across EMEA.
A new memorandum of understanding (MoU) states the firms’ intentions to combine their Japanese equities and equity capital markets businesses. The joint initiative will be operational from January 2027.
The announcement builds on a strategic alliance initiated in 2021, designed for cooperation on corporate and investment banking business opportunities. It was expanded in 2023 to cover mergers and acquisitions, equity and debt capital markets, with a focus on investment grade (IG) clients in the US.
Later MoUs were signed to extend this agreement to the EMEA region, Canada, Asia and Australia, and to offer the firms’ joint coverage initiatives to larger global sponsors, pre-IPO companies and sub-IG corporate clients.
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