Eslead secures ¥30 bn syndicated loan to fund strategic shift

Eslead Corporation finalized a ¥30 billion committed syndicated loan agreement on December 25, 2025, following board approval on December 19, 2025. This financing supports the company's new business model, which focuses on generating rental income and maximizing capital gains through strategic property holding periods, a departure from its previous immediate delivery model. The loan, collateralized by real estate, has a commitment period from January 30, 2026, to February 26, 2027, and matures on February 28, 2030, with an applicable interest rate of TIBOR plus spread.

The agreement includes financial covenants requiring Eslead to maintain consolidated net assets at or above 75% of either the March 31, 2025 figure or the most recent fiscal year-end figure, whichever is higher, starting from March 31, 2026. Additionally, the company must avoid recording ordinary profit losses in its consolidated statement of income for any two consecutive fiscal years, beginning March 31, 2026.

Key participants in the syndicated loan include arranger and agent Sumitomo Mitsui Banking Corporation, along with participating financial institutions such as MUFG Bank, Sumitomo Mitsui Trust Bank, Resona Bank, The Kansai Mirai Bank, and The Chiba Bank. Eslead's earnings forecast for the fiscal year ending March 31, 2026, remains unchanged, though any necessary revisions will be promptly disclosed based on future business performance trends.