Goldman Sachs Invests in Sumitomo Mitsui Financial Group, Expands Business Cooperation

Goldman Sachs and Sumitomo Mitsui Financial Group have agreed on a deal where Goldman Sachs will invest JPY 150.3 billion ($1.27 billion) in SMFG convertible preferred stock, with a 4.5% annual cash dividend. SMFG will also provide Goldman Sachs with up to $1 billion in first loss protection for credit risks. The two firms will expand their cooperation on non-performing asset disposal, financial restructuring, and other areas. The transactions are expected to close in February 2003, subject to regulatory approvals.