Sumitomo Life Insurance Co. said Friday it took out a 75 billion yen perpetual subordinated loan from Sumitomo Mitsui Banking Corp. and other lenders, and simultaneously repaid SMBC and others a combined 225 billion yen in subordinated loans that carried maturity periods.

A perpetual subordinated loan does not carry a maturity and the borrower continues to pay a yield — which is usually much higher than interest rates accruing from other fundraising tools — until it redeems the perpetual loan.

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