Wakachiku Construction secures ¥8 bn in new funding

Wakachiku Construction Co., Ltd. today announced its decision to execute a borrowing under a commitment line agreement with ten financial institutions, including trust banks, city banks, and regional banks. The purpose of this borrowing is to efficiently procure working capital.

The borrowing is scheduled for October 24, 2025, and involves a syndicated commitment line agreement with a total facility of ¥13 billion. Wakachiku Construction will repay existing borrowings of ¥2.5 billion and secure new borrowings of ¥8 billion. The repayment deadline for this new borrowing is set for November 10, 2025, and it will be unsecured.

The agreement includes financial covenants, requiring the company to maintain its net assets on the non-consolidated balance sheet at the end of each fiscal year at or above 75% of the greater of the amounts as of March 2025 or the immediately preceding fiscal year-end. Additionally, the company must not incur ordinary losses for two consecutive periods on its non-consolidated income statement at the end of each fiscal year. The company anticipates that this transaction will have a minor impact on its business performance.