49991 - DCM Square JPN

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Summary of Investment Information

Project Number

49991

Company Name

SUMITOMO MITSUI FINANCIAL GROUP, INC.

Date SPI Disclosed

Feb 19, 2026

Country

India

Region

South Asia

Projected Board Date

Aug 6, 2025

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Feb 23, 2026

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Aug 6, 2025
Signed : Feb 3, 2026
Invested : Feb 12, 2026

Sector

Commercial Banking - General

Project Description

The proposed investment consists of an up to US$250 million subscription, for IFC's own account, to senior unsecured notes (the Notes) to be issued by either (i) Sumitomo Mitsui Financial Group (SMFG or the Group) or (ii) Sumitomo Mitsui Banking Corporation (SMBC or the Bank) (with both SMFG and SMBC collectively referred to as the Issuer) (the Project).

The Notes will qualify as a digital inclusion bond in accordance with the Issuer's Social Finance Framework, which will adhere to the International Capital Markets Association's (ICMA) Social Bond Principles. The proceeds of IFC's investment will be wholly channeled to emerging Asian countries through the Issuer or Issuer's group companies for Eligible Digital Inclusion Social Projects in accordance with the Issuer’s Social Finance Framework including enhancing access to finance for micro, small and medium enterprises (MSME).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	250.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Labeled: Green;Blue;Social-Loans/Bonds

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant, expected Project-level outcome is to: (i) increase access to digital financial services for MSMEs; and (ii) increase and improve access to digital connectivity for individuals and businesses in emerging Asian countries. Beyond the Project, IFC anticipates that the investment will contribute to market creation by supporting the first ICMA-compliant social bond, with a digital inclusion theme, issued by a commercial bank in the Asia and Pacific region.

IFC's additionality in the Project is expected to be both financial and non-financial. IFC will deliver financial additionality by investing in the pioneering thematic bond to be issued by the Issuer, which is the first ICMA-compliant social bond with a digital inclusion theme issued by a commercial bank in the Asia Pacific region. IFC has been collaborating with the Issuer in conceptualizing digital inclusion financing to develop the Issuer's Social Finance Framework.

Indicator	Metrics	Comments
Board Composition - Total (#)	number
Board Composition - Women (#)	number

E&S Category Rationale / Risks and Mitigation

The bond will support Eligible Digital Inclusion Social sub-Projects in accordance with the Issuer’s Social Finance Framework, with the proceeds be passed onto initiatives such as: (i) SMICC in India to expand its lending to MSMEs processed fully or partially through digital channels; and (ii) SMBC to support its financing of data centers in India, Indonesia, and Malaysia. Higher environmental and social (E&S) risk activities, including those involving: (i) involuntary resettlement; (ii) risk of adverse impacts on indigenous peoples; (iii) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; (iv) risk of retrenchment; or (v) significant occupational health and safety risks, will not be eligible for financing from the proceeds of the Project. Coal-related activities, including coal mining, coal transportation or coal-fired power plants, as well as infrastructure services exclusively dedicated to supporting any of these activities, will also not be supported by this Project. The Project has been categorized as FI-2 as the activities the proposed Project will support are expected to have few and moderate E&S risks that are generally site-specific, largely reversible, and readily addressed through mitigation measures. The applicable E&S performance requirements for the Project will include the IFC Exclusion List, national E&S laws and regulations, and screening out higher E&S risk activities. Financing of data centers by SMBC will also be aligned with the IFC Performance Standards.

The main E&S risks and impacts of the proposed Project, while moderate in nature as described above, may arise from the data center financing activities by SMBC and the MSME financing activities by SMICC. They may include risks and impacts related to occupational health and safety, labor and working conditions, greenhouse gas emission, pollution management, among others.
SMBC has maintained an E&S management system (ESMS) and will apply it to its financing of data centers under the Project. SMBC’s ESMS includes key aspects such as E&S policy, roles and responsibilities, internal organization and competency development, screening and categorization, applying IFC Performance Standards for projects located outside OECD countries and monitoring requirements, among others. SMICC has also developed an ESMS that is appropriate for its MSME financing activities. For this Project, SMBC and SMICC will continue to maintain proper capacity and implement the ESMS for activities supported by the Project in line with the above applicable E&S performance requirements.

Contacts

For Inquiries About the Project, Contact

Sumitomo Mitsui Financial Group, Inc.
Sustainability Advisory Department

Yoda_Hiraku@dn.smbc.co.jp
1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, 100-0005 Japan
https://www.smfg.co.jp/english/

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