Sumitomo Mitsui Financial Group 2021 Financial Overview
SMBC Covered Bond Programme
Under the Trust Act of Japan, bondholders have dual recourse to SMBC's assets and the segregated cover
pool assets.
To protect bondholders, the Programme puts self-originated Japanese RMBS as collateral under the TRS.
Segregation of assets is ensured in the case of SMBC's insolvency because enforceability of the TRS is
protected under the Netting Act of Japan.
Cover pool assets remain on the balance sheet of SMBC acting in its own capacity.
BNY Mellon Corporate
Trustee Services Limited
Bond Trustee / Security Trustee
at issue
ongoing & at maturity
Trust Deed
Bondholders
Covered
Bonds
(Moody's: Aaa)
Covered
Bond
Proceeds
SMBC
(acting in its
proprietary
capacity)
TRS Counterparty
SMBC
(Moody's: A1 (Stable) / S&P: A (Positive))
Covered Bond Proceeds
Self-originated Japanese Aaa-rated RMBS*2
SMBC
(acting as trustee
of the Trust*1)
Issuer
Interest & Principal of Covered Bond
(Bond Coupon Frequency)
RMBS Cash Flow (JPY / Monthly payment)
Total Return Swap ("TRS") /
Credit Support Annex ("CSA")
Interest & Principal
of Covered Bond
(Bond Coupon
Frequency)
*1 SMBC, licensed by Japanese FSA as financial institutions which engage in trust business, acting as trustee on behalf of a
specified money trust (tokutei kinsen shintaku) No. 0010-377600-0001 (the "Trust”)
*2 Cover pool assets may include senior tranches Aa-rated RMBS where higher haircut ratio of 20% is applied, JGB and cash
Copyright 2021 Sumitomo Mitsui Financial Group.
All Rights Reserved.
62View entire presentation