Tokyo Century secures JPY20bn hybrid loan agreement

Tokyo Century Corporation has announced the conclusion of a ¥20 billion hybrid loan (subordinated loan) agreement. The loan, scheduled for execution on March 10, 2025, will mature on March 10, 2060. The company retains the option for early repayment starting March 10, 2030, at its discretion. Interest payments can be deferred, offering financial flexibility. The loan is subordinated to the company’s general obligations but ranks equally with preferred stock and ahead of common stock. It received a rating of A from Rating and Investment Information, Inc. (R&I) and A+ from Japan Credit Rating Agency (JCR). R&I assessed the capital nature of the loan as "Class 3・50%," JCR as "Medium・50%", and S&P Global Ratings Japan Inc. as "Moderate Capital・100%." Tokyo Century intends to fund any early repayment through refinancing with common stock or other securities with similar or higher capital recognition, though this may be waived if certain financial conditions are met.