Asahi Holdings announces first public offering of unsecured straight bonds

ARE Holdings, Inc. has announced the issuance of its first unsecured straight bonds, a JPY 20 bn public offering maturing in 2028. The 3-year bonds carry an annual interest rate of 1.554% and will be issued on October 23, 2025. This move is designed to enhance financial stability by diversifying funding sources and supporting business expansion.

The proceeds from this bond issuance are earmarked for partial redemption of USD-denominated Zero Coupon Guaranteed Convertible Bonds due in 2026, or for working capital related to the company's North American operations. The bonds, rated A- by Rating and Investment Information, Inc. (R&I), include an inter-bond pari passu clause and a negative pledge clause.

The offering is underwritten by a syndicate of major financial institutions, including Daiwa Securities Co. Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., with Mizuho Bank, Ltd. serving as the fiscal agent. Interest payments will occur semi-annually on April 23 and October 23, with a lump-sum redemption at maturity.