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Sumitomo Forestry to Issue 250 Billion Yen Hybrid Bonds for Tri Pointe Acquisition Funding

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Sumitomo Forestry (TYO:1911) has decided to publicly issue hybrid subordinated bonds to raise 250 billion yen toward repaying the bridge loan used for its May 2026 acquisition of Tri Pointe Homes.

The construction firm is also considering an additional hybrid loan, with total combined financing expected to reach 350 billion yen, according to a Tokyo bourse filing on Monday.

The bonds feature equity-like characteristics, including voluntary interest deferral, super-long maturity, and subordination in liquidation, with rating agencies expected to assign 50% equity credit to the proceeds.

The company plans to refinance the bonds through equity-like instruments upon early redemption, subject to certain conditions, with terms to be finalized later.

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