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3h ago

SMBC to Lift Jefferies Stake to 20%, Extend $2.5 Billion Credit, Plan Japan Equities JV

The announcement underscores a tighter SMFG–Jefferies alliance centered on equities plus expanded financing capacity, pending regulatory clearance.

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Overview

  • SMBC will invest an additional 135 billion yen (about $913 million) to raise its Jefferies holding to up to 20% from 14.5%, the companies said.
  • A Japan-based joint venture will combine the firms’ wholesale Japanese equities operations covering ECM, research, and sales and trading, targeting a January 2027 launch.
  • SMBC will provide Jefferies with $2.5 billion in new credit facilities for leveraged lending in EMEA and pre-listing lending in the United States.
  • The investment and the planned joint venture require approvals in Japan and the United States, with governance and structure details still in development.
  • SMFG and Jefferies began collaborating in 2021 and initiated the stake in 2023, reflecting a broader trend of Japanese banks aligning with U.S. investment banks.