Pharma Foods secures new ¥10 bn commitment line with covenants

Pharma Foods International Co., Ltd. announced on September 4, 2025, the renewal of a syndicated commitment line agreement totaling ¥10 billion. This agreement, effective from September 9, 2025, to September 8, 2028, aims to bolster the company’s financial foundation for its healthcare, cosmetics, and pharmaceutical development and sales, as well as new growth investments in agriculture and fiber.

The renewed commitment line is structured as a syndicated facility, with The Kyoto Bank, Ltd. acting as the arranger. The loan interest rate will be based on the prime rate plus a spread, and the agreement is unsecured. A consortium of banks, including Resona Bank, Ltd., SBI Shinsei Bank, Ltd., and others, are participating as lenders.

The agreement includes several financial covenants, effective from the July 2025 fiscal year-end. These require Pharma Foods to maintain a minimum of 75% of the total net assets from the previous fiscal year, ensure that ordinary profit/loss does not result in a loss, and avoid consecutive losses in ordinary profit/loss for two periods. The company anticipates a minor impact on its July 2026 fiscal year performance from this agreement.