Wakachiku Construction secures new JPY 13 bn commitment line

Wakachiku Construction Co., Ltd. announced on December 18, 2025, its decision to execute a borrowing under a commitment line agreement with ten financial institutions. This move aims to improve the efficiency of the company's working capital. The borrowing is scheduled to be implemented on December 24, 2025.

The agreement is structured as a syndication-type commitment line totaling JPY 13,000 million. Wakachiku Construction will repay existing borrowings of JPY 9,000 million and secure new borrowings of JPY 13,000 million. The repayment deadline for this new borrowing is set for January 9, 2026, and it is unsecured.

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