Daito Trust Construction secures ¥140 bn syndicated loan for refinancing, development

Daito Trust Construction Co., Ltd. announced on September 19, 2025, the execution of a syndicated loan agreement totaling ¥140 billion. The loan, arranged by Sumitomo Mitsui Banking Corp. with Mitsubishi UFJ Bank and Mizuho Bank as co-arrangers, is primarily intended for refinancing a syndicated loan from November 2020 and securing funds for the expansion of its real estate development business.

The agreement comprises four tranches: Tranche A for ¥43.5 billion, Tranche B for ¥34.6 billion, Tranche C for ¥27.4 billion, and Tranche D for ¥34.5 billion. Loan contracts for all tranches are scheduled to be signed on September 25, 2025, with funds available or commitment periods commencing on September 30, 2025. Repayment dates vary by tranche, ranging from March 30, 2029, to September 30, 2035, and the applicable interest rate is TIBOR plus a spread.

A key financial covenant requires Daito Trust Construction to maintain consolidated net assets at the end of each quarter after September 30, 2025, at or above 50% of the consolidated net assets reported at the end of March 2025. The company anticipates the loan will have a minor impact on its financial performance for the fiscal year ending March 2026.