Sugi Holdings secures JPY 30 bn loan with financial covenants

Sugi Holdings Co., Ltd. has secured a JPY 30,000 million loan agreement with Aozora Bank, Ltd., with an execution date of September 11, 2025, and a repayment deadline of September 17, 2032. This funding is designated for the company's business operations and does not involve any collateral.

The agreement includes several financial covenants, effective from the business year ending February 2026. Sugi Holdings is required to maintain its consolidated net assets at or above 70% of the previous year's total and at JPY 0 or more. Furthermore, the company must ensure its consolidated operating profit and ordinary profit for each business year remain positive.

Additionally, a key covenant dictates that Sugi Holdings must maintain a long-term issuer rating of BBB or higher from Japan Credit Rating Agency, Ltd. The company anticipates that this loan agreement will have a minor impact on its consolidated business results for the entire business year ending February 2026.