First Public-Private Partnership with the U.S. Army Corps of Engineers

New York – October 19, 2021: SMBC, a member of SMBC Group, today announced that it has closed a $642 million Green Loan and acted as Co-Managing Underwriter on $273 million of Private Activity Bonds (Green Bonds) for the construction of the FM Area Diversion Project in the Fargo-Moorhead area in North Dakota and Minnesota, the first public-private partnership (P3) with the United States Army Corps of Engineers.

SMBC was a mandated lead arranger, hedge coordinator, deal contingent hedge provider, administrative agent, and green loan coordinator on $642 million of Senior Secured Credit Facilities and acted as Co-Managing Underwriter on $273 million of Private Activity Bonds for Red River Valley Alliance, LLC. Proceeds from the transaction are being used to finance the construction of a flood diversion channel and associated infrastructure that will help prevent future flooding events from impacting the Fargo-Moorhead area.

“We’re very excited to play an integral role in helping to finance this critical infrastructure project in this area of the country,” said Adam Sherman, Managing Director, Head of Municipal and Infrastructure Finance, North America, at SMBC. “The FM Area Diversion Project demonstrates SMBC’s ability to provide multiple solutions and services to clients—from lending and underwriting, to hedge products and ESG coordination.”

“This transaction highlights SMBC’s commitment to financing sustainable projects and the role that public-private partnerships can play in building resilient infrastructure. SMBC’s infrastructure banking team has already developed a strong track record closing ESG financings, and the team stands ready to provide ESG solutions to our sponsor client base,” said Raymond DiPrinzio, Managing Director, Co-Head of Infrastructure Finance, Global Structured Finance, North America, at SMBC.

Along with an international and local consortium of partners, including Acciona, Shikun & Binui, and North American Construction Group, Red River Valley Alliance, LLC will design, build, finance, operate, and maintain the project under a long-term project agreement.

About SMBC

Group SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 140 offices and 86,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges. As of June 30, 2021, its total assets were $2.11 trillion.

In the Americas, SMBC Group has a presence in the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network. The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corporation (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC Rail Services LLC, Manufacturers Bank, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.

Media Relations Contact:
Mina Takahashi
+1 212-756-5593
mina_takahashi@smbcgroup.com