NEW YORK & TOKYO – (COMMERCIAL THREAD) – Jefferies Financial Group, Inc. (NYSE: JEF) (“Jefferies Financial”), the parent company of Jefferies Group LLC (“Jefferies Group”) (hereinafter referred to as “Jefferies”), and Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG), Sumitomo Mitsui Banking Corporation (“SMBC”) and SMBC Nikko Securities Inc. (“SMBC Nikko”) (hereinafter referred to as “SMBC Group”) announced today that they have entered into a Strategic Alliance to collaborate on future business opportunities for investment and investment banking.

Through the strategic alliance, Jefferies and SMBC Group will coordinate in high growth areas of corporate and investment banking activities. These initiatives are expected to strengthen the existing activities of both companies and improve the ability of each company to meet the needs of its customers. Jefferies and SMBC Group will coordinate, among other things, the efforts of leveraged finance activities in the United States to expand and evolve existing offerings; form a global strategic partnership to seek cross-border merger and acquisition opportunities involving Japanese companies; and jointly pursue investment banking, capital markets and funding opportunities by leveraging the respective strengths of the two companies initially in the US healthcare industry.

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

SMBC Group intends to solidify its relationship with Jefferies by acquiring on the open market up to 4.9% of the publicly traded common shares of Jefferies Financial, reflecting an equity investment of approximately $ 386 million based of the closing price on July 13, 2021., subject to receipt of the Hart Scott Rodino authorization.

Rich Handler, CEO of Jefferies, and Brian Friedman, its chairman, said: “We are delighted and excited to enter into this alliance with the SMBC Group and to gain their support for the continued growth and momentum of Jefferies. We believe that the Alliance will further strengthen our already strong capacities in investment banking and capital markets. We view the Alliance as the start of a long-term relationship with the SMBC Group, and look forward to our many years of partnering on many aspects of our respective businesses in order to better serve our customers. We are particularly happy to welcome SMBC Group as our new shareholder soon. ”

SMBC Group President and CEO Jun Ohta and SMBC Nikko CEO Yuichiro Kondo said: “We are excited to enter this strategic partnership with Jefferies to help accelerate the growth of the corporate and investment banking businesses of both institutions and to enhance the global advisory and product needs of our clients. We look forward to working with Jefferies, a global investment banking firm that provides a full range of investment and capital markets products and services, and expects great things from the Alliance. ”

Citi served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to the SMBC group. Jefferies Group served as financial advisor to Jefferies Financial and Jefferies Group.

About Jefferies Financial Group, Inc.

Jefferies is the largest independent, global, full-service investment bank headquartered in the United States. Customer service oriented for nearly 60 years, Jefferies is a leader in providing knowledge, expertise and execution to investors, businesses and governments. The company offers a full range of investment banking, advisory, sales and trading, research and wealth management services for all products in the Americas, Europe and Asia. Jefferies’ Leucadia Asset Management division is a growing alternative asset management platform.

About Sumitomo Mitsui Financial Group, Inc.

SMBC Group is one of the largest financial institutions headquartered in Japan, with an established presence in all personal and commercial banking activities. Through its subsidiaries and affiliates, SMBC Group offers a diverse range of financial services, including commercial banking, leasing, securities, credit cards, consumer credit and more. services. The total consolidated assets of the SMBC group stood at 242.6 trillion yen as of March 31, 2021.

About Sumitomo Mitsui Banking Corporation

SMBC is a commercial banking entity within the SMBC group and is one of the largest commercial banks in the world on a total asset basis. It provides a wide range of banking services to businesses and individuals in Japan and around the world.

About SMBC Nikko Securities Inc.

SMBC Nikko is one of the leading full-line securities companies in Japan, covering all customer segments with a wide range of financial products and services through its international network.

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