Nippon Seiro announces early repayment of subordinated loan

Nippon Seiro Co., Ltd. announced on October 8, 2025, a decision by its board of directors to make an early repayment of a perpetual subordinated loan amounting to JPY 1,132,671,649. This repayment, scheduled for October 31, 2025, consists of an initial principal of JPY 900,000,000, as well as deferred interest accrued up to October 23, 2025, totaling JPY 228,960,000, and additional deferred and cash interest of JPY 2,969,319 and JPY 742,330 respectively.

This move follows a previous early repayment on May 21, 2025, and is attributed to improved performance resulting from measures implemented under the "Medium-Term Management Plan (23-27)," formulated on February 28, 2023. The company aims to further enhance its financial structure by utilizing newly generated free cash flow.

The original perpetual subordinated loan, totaling JPY 3,000,000,000, was secured on October 24, 2023, from Japan Industrial Solutions No. 3 Investment Limited Partnership. Nippon Seiro intends to continue striving for early repayment of the remaining loan balance, while monitoring financial conditions and external factors, and anticipates a minimal impact on its earnings from this early repayment.