Jefferies and SMBC Group Enter into Strategic Alliance to Drive Growth

Jefferies Financial Group, Inc., the US-based global and full-service investment banking firm, announced that it has entered into a Strategic Alliance with Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Financial Group, Inc., and SMBC Nikko Securities Inc., three major subsidiaries of SMBC Group, to collaborate on future corporate and investment banking business opportunities. SMBC Group is a japanese multinational banking and financial services institution providing fianancial products and services to wide range of clients.  

Wanna Know How to Reach Our Audience of Millions at Fazzaco?​

Through the Strategic Alliance, Jefferies and SMBC Group will coordinate across highly accretive growth areas in the corporate and investment banking business. These initiatives are expected to strengthen the existing businesses of both firms, and enhance each firm's ability to support its clients' needs. Jefferies and SMBC Group will, among other things, coordinate efforts in the U.S. leveraged finance business to expand and scale existing offerings; form a global strategic partnership to seek cross-border M&A opportunities involving Japanese companies; and jointly pursue investment banking, capital markets and financing opportunities by leveraging both companies’respective strengths initially in the U.S. Healthcare sector.

SMBC will also provide financing to Jefferies Finance LLC (JFIN), the leveraged finance underwriting affiliate of Jefferies, to expand JFIN's and Jefferies' leveraged finance origination and underwriting efforts, as well as financing to Jefferies Group. SMBC's financing to JFIN is in the form of a $1.65 billion revolving credit facility and a $250 million subordinated loan to support JFIN's lending capabilities, and the financing to Jefferies is in the form of a $350 million revolving credit facility.

Rich Handler, Jefferies' CEO, and Brian Friedman, its President, stated: "We view the Alliance as the beginning of a long-term relationship with SMBC Group, and we look forward to many years of partnering on many aspects of our respective businesses to best serve our clients. We are particularly pleased to welcome SMBC Group as our soon-to-be newest shareholder."

President and Group CEO of SMBC Group, Jun Ohta, and Yuichiro Kondo, CEO of SMBC Nikko commented: "We are pleased to enter into this strategic partnership with Jefferies to help accelerate the growth of the Corporate and Investment Banking businesses of both institutions, and to enhance our clients' global advisory and product needs."