Japanese financial services company Sumitomo Mitsui Financial Group (SMFG) is looking to invest up to $25m in Affirmative Investment Management (AIM), a UK-based asset management firm.

AIM focuses on fixed-income portfolios offering a positive environmental and social impact. The business managed $650m in assets at last year-end.

This will make SMFG Japan’s first lender to join forces with an expert in ESG bond investments, reported Reuters.

The Japanese lender plans to make an infusion of $20m in AIM.

It will make up to another $5m over the next few years. The addition investment will be based on the performance of AIM, according to the report.

Post deal completion, SMFG will own 24.9% of AIM’s total shares outstanding. SMFG will have a 4.9% interest in AIM in terms of voting rights.

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None of the parties commented on the issue.

Last year, it was reported that SMFG will acquire British asset manager TT International, which focuses on emerging-market equities.

Nikkei reported that SMFG will pay around JPY20bn ($188m) as deal consideration for this acquisition.

However, it was reported that the deal’s value may increase up to JPY35bn after including performance-based compensation provisions.

Early in 2020, SMFG also announced an investment in alternative investment manager Ares Management.