Notice Regarding Determination of Issuance Condition for the Third Publicly Offered Hybrid Bonds (Subordinated Bonds)

Sep. 6, 2024

Sumitomo Chemical hereby announces that today it has determined the issuance terms and conditions of the third publicly offered hybrid bonds (subordinated bond) (the “Third Hybrid Bonds”), the issuance of which was announced on August 2, 2024. The details are as follows.

	Sumitomo Chemical Co., Ltd. 3rd Unsecured subordinated bonds with interest payment deferrable clause and optional early redemption conditions
1. Issue amount	JPY 100 billion
2. Initial interest rate	3.300% per annum (Note 1)
3. Issue date	September 12, 2024
4. Maturity date	September 12, 2059
5. Early redemption   (Note 2)	Sumitomo Chemical may redeem the Third Hybrid Bonds at its discretion on each interest payment date from and including September 12, 2029, or in case a Tax Event or an Equity Credit Change Event occurs.
6. Interest payment dates	March 12 and September 12 of each year
7. Deferral of interest payments	Sumitomo Chemical may, at its discretion, defer all or part of the interest payments on the Third Hybrid Bonds.
8. Subordination	The Third Hybrid Bonds are ranked subordinated to Sumitomo Chemical’s general debt and senior to the common stock.
9. Rating	BBB+ (Rating and Investment Information, Inc.) A- (Japan Credit Rating Agency, Ltd.)
10. Equity credit	“Class 3 - Equity Credit 50”  (Rating and Investment Information, Inc.) “Medium, 50%”  (Japan Credit Rating Agency, Ltd.)
11. Underwriters	・SMBC Nikko Securities Inc. ・Mizuho Securities Co., Ltd. ・Nomura Securities Co., Ltd. ・Daiwa Securities Co., Ltd. ・Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
12. Fiscal agent	Sumitomo Mitsui Banking Corporation

(Note 1) The fixed interest rate will be applied from the day after September 12, 2024, to September 12, 2029, and a variable interest rate from the day after September 12, 2029 (“Step-up interest rates” will be applied from the day after September 12, 2029).

(Note 2) If Sumitomo Chemical acquires the Third Hybrid Bonds before their maturity date by redemption or purchase (the “Early Redemption”), it expects to raise funds within a 12-month period prior to the Early Redemption by issuing common stock, or by issuing other securities or liabilities (the “Replacement Securities”) approved by the rating agencies as having equity attributes equal to or greater than the Third Hybrid Bonds. In the case of an Early Redemption on or after the first call date of the Third Hybrid Bonds, however, Sumitomo Chemical may decide not to raise funds through issuance of the Replacement Securities if certain financial conditions are met.   

Note

This notice has been prepared for the sole purpose of publicly announcing Sumitomo Chemical’s issuance of hybrid bonds (subordinated bonds), not for the purpose of soliciting investments or performing any similar act.

Contact

Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/