Agratio urban design Inc. [3467.T]
TOKYO, Mar 26 (Pulse News Wire) – Agratio Urban Design Inc. (3467.T) announced today that its board of directors approved a syndicated loan agreement worth ¥3.900 billion on March 26, 2026.
The loan, which includes financial covenants, was arranged by Mitsubishi UFJ Bank, Mizuho Bank, and Sumitomo Mitsui Trust Bank. It will mature on March 31, 2036, with interest rates based on TIBOR plus a spread. The funds raised through this loan will primarily finance the acquisition of shares in Ho Yu Corporation and Tamagawa Construction, previously disclosed on February 13, 2026. As collateral, Agratio Urban Design will provide certain assets held by Ho Yu Corporation and Tamagawa Construction, subject to specific conditions. This includes setting up mortgage rights on real estate and pledges on securities.
Temporary registrations will occur if properties are not disposed of by April 1, 2027, while permanent registrations will take place if they remain unsold until April 1, 2029. Financial covenants attached to the loan stipulate that Agratio Urban Design must maintain its consolidated net asset value at least at the higher of either 150% of the amount recorded as of March 31, 2025, or 120% of the previous fiscal year-end figure. Additionally, the company must avoid reporting operating losses, ensure inventory turnover periods within 12 months for housing operations and 22 months for asset solution services, and keep the consolidated net debt-to-equity ratio below three times. In a statement, President Ryūichi Ōhara emphasized that the company's performance forecast for the fiscal year ending March 31, 2026, released on March 13, 2026, already accounts for the impact of this financing arrangement. Agratio Urban Design commits to promptly disclosing any significant developments related to this loan agreement.
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