Zensho Holdings finalizes terms for JPY 20 bn hybrid bond issuance

Zensho Holdings Co., Ltd. has finalized terms for its first series of publicly offered hybrid bonds (subordinated bonds), amounting to JPY 20 billion. The bonds, with an initial interest rate of 2.933% per annum, will be issued on September 11, 2025, and mature on September 10, 2060. Interest payments will occur semi-annually on March 11 and September 11, with the company retaining the option to defer interest payments.

The bonds are unsecured and subordinated, ranking below general debts but senior to common stock. They have received a BBB rating from the Japan Credit Rating Agency, Ltd., with 50% equity credit. Zensho Holdings may redeem the bonds early on or after September 11, 2030, or in the event of specific tax or capitalization events. The initial fixed interest rate will apply until September 11, 2030, after which a floating rate will apply with a step-up.

Proceeds from the bond issuance are earmarked for capital investments, including funding new restaurant openings, renovating existing stores domestically and globally, establishing and relocating factories, and enhancing business platforms through DX and AI investments. SMBC Nikko Securities Inc. leads a syndicate of underwriters, with Mizuho Bank, Ltd. serving as the fiscal agent.