LIXIL secures ¥77 bn loan to fund business capital, refinance existing debt

LIXIL Corporation concluded a new loan agreement with financial covenants on September 19, 2025, effective September 25, 2025. This agreement involves syndicated term loans totaling ¥77 billion from city and regional banks.

The loans include two tranches under Syndicated Term Loan ①: Tranche A and B for ¥12 billion maturing September 28, 2029, and Tranche C for ¥38 billion maturing September 30, 2031. Additionally, Syndicated Term Loan ② for ¥27 billion will mature on September 30, 2032. The purpose of these loans is to fund business capital, including the refinancing of existing borrowings.

The agreement includes specific financial covenants. LIXIL must maintain equity on its consolidated statement of financial position at an amount equal to or greater than the higher of (i) 60% of the total equity as of March 31, 2025, or (ii) 60% of the total equity as of the last day of the most recent fiscal year, starting from the fiscal year ending March 31, 2026. Furthermore, the company is prohibited from incurring a business loss for two consecutive fiscal years, beginning from the fiscal year ending March 31, 2026.

LIXIL has indicated that the impact of this loan agreement on its consolidated financial performance will be non-material. No collateral details were provided for these loans.