March 23, 2015

                                                                                                     Sumitomo Mitsui Banking Corporation

Commencement of Business Operations of a SMBC Finance Company in Mexico

TOKYO, March 23, 2015 – Sumitomo Mitsui Banking Corporation (SMBC, President and CEO: Takeshi Kunibe) announced that it has established and commenced operations today of its wholly-owned subsidiary in Mexico – SMBC, S.A.P.I. de C.V. SOFOM E.N.R. (hereinafter referred to as “SOFOM”).

SOFOM is the abbreviation for Sociedades Financieras de Objeto Multiple in Spanish, and translated as “multi-purpose financial company,” which is a type of a finance company common in Mexico.

Mexico is a leading car manufacturing and exporting country, benefiting from its competitive manufacturing cost and geographical location next to the U.S.A., the world’s largest car market. Numerous Japanese car manufacturers and equipment suppliers have entered the Mexican market, and the number of Japanese companies operating in Mexico has increased significantly over the recent years.  Also, the country is blessed with rich natural resources such as oil, gold, silver and zinc, and in line with Mexico’s economic growth, there is an increasing demand for infrastructure development including power and transportation. Mexico is also proactively working to reform various sectors and systems such as energy, communications, tax, finance and education, and more business opportunities for private companies, both domestic and foreign, are expected to emerge. A notable example is the country’s energy reform, which is opening up the oil business to private companies.  

Against this backdrop, there are increasing demands for local currency finance from our clients, and through SOFOM, we, at SMBC, aim to further strengthen our capability in corporate finance and project finance spaces. We will strive to further develop our capability in Mexico as a part of the bank’s strategy to enhance business in the Latin Americas, where further business growth is foreseen.

(Profile of SOFOM)