Sumitomo Mitsui Trust Group has told Japan's Kanto Local Finance Bureau exactly how big, and how risky, its next bond sale will be, after leaving the details blank three weeks earlier. An amended shelf registration statement filed August 17, 2026 fills in the coupon, size and structure of the group's 25th series of unsecured subordinated bonds, replacing what the original July 24 filing had simply marked "undetermined".
The terms, still described as indicative pending final pricing on August 28, 2026, are set out below.
| Feature | Detail |
|---|---|
| Issue amount (indicative) | ¥40bn |
| Coupon, years 1-5 (Sept 2026-Sept 2031) | 2.400%-3.200% (indicative) |
| Coupon, years 6-10 (Sept 2031-Sept 2036) | 5-year JGB yield + 0.250%-1.050% (indicative) |
| Subscription period | August 31-September 10, 2026 |
| Payment date | September 11, 2026 |
| Maturity | September 11, 2036 |
| Optional call date | September 11, 2031 (subject to FSA confirmation) |
| Expected ratings | A+ (R&I) / AA- (JCR) |
The bond's defining feature is not the coupon, it is the exit. If Japan's prime minister ever invokes the "specified second measure" under the Deposit Insurance Act, the mechanism used to intervene when a deposit-taking institution is judged to have failed, the group would not defer interest on this bond, it would extinguish the entire principal and any unpaid interest outright. The filing gives the group up to ten business days after that event to set the date on which the debt is formally cancelled, and bondholders would have no claim to recover it.
The group can also retire the bonds early, on September 11, 2031, exactly five years after the payment date, but only with the prior confirmation of Japan's Financial Services Agency. That checkpoint is standard for capital instruments regulators count toward a bank's loss-absorbing buffer: lenders cannot simply pull the debt back without sign-off.
Rating agencies have already flagged where the credit is likely to land: R&I is expected to assign A+ and JCR AA-, with both ratings due to be obtained on August 28, 2026. Subscriptions run from August 31 to September 10, with eight underwriters on the docket: Daiwa Securities, Nomura, SMBC Nikko, SBI Securities, Okasan, Tokai Tokyo, Rakuten and Monex. Payment falls on September 11, 2026, and the notes mature a decade later, on September 11, 2036.
The issue sits inside a ¥700bn shelf registration ceiling that the group set up on July 24, 2026, effective August 3 and valid until August 2, 2028, which lets it sell further debt under the same umbrella without refiling each time.