Wakachiku Construction secures 9 bn yen via commitment line

Wakachiku Construction Co., Ltd. announced today, December 2, 2025, its decision to execute a new borrowing totaling 9 billion yen under an existing commitment line agreement with ten financial institutions. This move aims to efficiently manage the company's working capital. The borrowing is scheduled to be implemented on December 5, 2025.

The commitment line agreement is structured as a syndication type with a total facility of 13 billion yen. Wakachiku Construction will repay an existing borrowing of 10 billion yen before securing the new 9 billion yen. The repayment deadline for this new borrowing is set for December 24, 2025. The debt is unsecured.

The agreement includes certain financial covenants. Wakachiku Construction must maintain the amount of net assets on its non-consolidated balance sheet at the end of each fiscal year at 75% or more of the greater of the amounts for the fiscal year ending March 2025 or the immediately preceding fiscal year. Additionally, the company must avoid incurring an ordinary loss for two consecutive fiscal years on its non-consolidated income statement. The company anticipates that this transaction will have a minor impact on its business performance.