Daiwa House Industry secures JPY 65bn subordinated syndicated loan

Daiwa House Industry Co., Ltd. (TSE:1925) has secured a JPY 65 billion subordinated syndicated loan, effective June 30, 2025. The loan, characterized as hybrid financing with features of both equity and debt, is intended for the early repayment of a hybrid loan executed on October 30, 2020. The drawdown is scheduled for October 31, 2025, with a maturity date of October 31, 2060. The Company retains the option to prepay the principal on interest payment dates from October 31, 2030. Rating agencies, including Rating and Investment Information Inc. (R&I) and Japan Credit Rating Agency, Ltd. (JCR), are expected to grant 50% equity credit for the financing. The loan agreement includes subordination clauses to senior creditors and allows for potential deferral of interest payments by Daiwa House.