JT International to issue new hybrid bonds, buy back existing debt

JT International Financial Services (JTIFS), an overseas subsidiary of Japan Tobacco, plans to issue new euro-denominated subordinated hybrid bonds with deferred interest payment terms, maturing in 2055, in the international market. Concurrently, JTIFS will offer to repurchase its existing euro-denominated subordinated hybrid bonds, maturing in 2081, with an initial call period from January 7, 2026, to April 7, 2026. The new issuance aims to refinance the existing hybrid bonds and strengthen the JT Group's financial foundation.

The new hybrid bonds will be offered in international markets, including Europe and Asia, to non-US persons under Regulation S of the 1933 US Securities Act. The issuance will be guaranteed by Japan Tobacco, with a Luxembourg Stock Exchange Euro MTF listing. The funds will be used for general business purposes, including the buyback of the existing hybrid bonds.

The buyback offer for the existing bonds, issued on October 7, 2020, with a 2.375% interest rate until the first reset date, targets the entire outstanding amount of €500 million. The application deadline for the buyback is September 2, 2025, with settlement expected on September 4, 2025. Holders who apply for or indicate an intention to apply for the buyback will be given preferential allocation for the new hybrid bonds.