SMBC Nikko to receive $1.7bn capital injection from parent SMFG

TOKYO — SMBC Nikko Securities plans to raise 250 billion yen ($1.71 billion) as early as this week from parent Sumitomo Mitsui Financial Group as the brokerage seeks to expand services for corporate clients, Nikkei learned Monday.

The fundraising will take the form of a private placement of shares, sources familiar with the matter said. This would be the brokerage’s first capital increase since it became a subsidiary of SMFG in 2009. The group will maintain 100% ownership of SMBC.