Sumitomo Forestry to Issue Hybrid Bonds to Fund US Acquisition

TOKYO, Aug 07 (Pulse News Wire) – Sumitomo Forestry CO.,LTD. (1911.T) decided to issue hybrid bonds with subordinated clauses to fund part of the repayment for its acquisition of Tri Pointe Homes, Inc.

Completed on May 14, 2026. The total amount raised through the issuance of these bonds and equivalent hybrid loans is expected to be approximately ¥350.0 billion. The final issuance amount will depend on market conditions and interest rate trends. The company plans to raise funds primarily through the issuance of these hybrid bonds, which possess characteristics similar to equity such as deferred interest payments, long-term maturity, and junior status during liquidation proceedings.

Sumitomo Forestry anticipates receiving capital recognition from rating agencies for up to 50% of the bond issuance amount. In cases where early redemption or repurchase occurs prior to maturity, the company intends to finance through ordinary shares or securities/debts recognized as having equal or higher capital status, subject to certain conditions. Sumitomo Forestry appointed Nomura Securities, SMBC Nikko Securities, Daiwa Securities, and Mizuho Securities as joint lead managers for the bond issuance. The final terms, including the issuance amount and interest rates, will be determined based on market conditions and communicated promptly upon completion.