Japan Tobacco Inc. said today (August 27) its foreign subsidiary, JT International Financial Services B.V. (JTIFS), will issue Euro-denominated Ordinary Subordinated Guaranteed Fixed Rate Resettable Capital Securities due 2055. The new hybrid-style subordinated bonds, which combine debt and equity characteristics, will be offered in international markets. Proceeds will be used to refinance JTIFS’s outstanding Euro-denominated deeply subordinated guaranteed bonds due 2081, for which a tender offer has been launched.
JT said the move will help strengthen the group’s financial base, noting that rating agencies may recognize the new issuance as having partial equity credit.