Japan Tobacco subsidiary completes €500m bond issuance and tender offer

JT International Financial Services B.V. (JTIFS), a subsidiary of Japan Tobacco Inc., has completed the issuance of €500,000,000 Euro-denominated ordinary subordinated guaranteed fixed rate resettable capital securities due 2055. This new issuance, with an initial interest rate of 3.870% per annum, refinances existing subordinated bonds. The bonds are designed to enhance the financial foundation of the JT Group and are recognized by credit rating agencies for their equity-like attributes.

Simultaneously, JTIFS completed a tender offer for its Euro-denominated deeply subordinated guaranteed fixed rate resettable capital securities due 2081, accepting €132,443,000 at a purchase price of 99.875%. Post-tender, the outstanding amount of the 2081 bonds stands at €367,557,000. Both transactions settled on September 4, 2025.

The new bonds are listed on the Euro MTF of the Luxembourg Stock Exchange and are guaranteed by Japan Tobacco Inc. Moody's Japan K.K., S&P Global Ratings Japan Inc., and Rating and Investment Information, Inc. have assigned various equity credit ratings to these instruments.