FUKUVI CHEMICAL INDUSTRY CO.,LTD. [7871.T]
TOKYO, Apr 20 (Pulse News Wire) – Fukuvi Chemical Industry CO.,LTD. (7871.T) announced today that its subsidiary, Fu Kubi Okayama Kabushiki Kaisha, has entered into a syndicated loan agreement with financial covenants.
The agreement was approved during a board meeting held on April 20, 2026. The primary purpose of the loan, amounting to ¥2 billion, is to fund the construction and equipment installation at the Fukubi Okayama Second Production Site, as previously disclosed on February 06, 2026. The contract is set to be finalized on April 30, 2026, with the drawdown scheduled for May 8, 2026. The final repayment date is set for March 31, 2038. Key terms of the agreement include a commitment period tied to a term loan, with interest based on benchmark rates plus spread.
The arranger and agent for the transaction is North Land Bank, while co-arrangers include Fukui Bank and Sumitomo Mitsui Banking Corporation. The loan is unsecured and does not require guarantees. Financial covenants stipulate that Fu Kubi Okayama Kabushiki Kaisha's balance sheet equity must maintain at least 70% of the previous fiscal year-end figure, and operating profit should avoid consecutive losses. Looking ahead, the company anticipates that the long-term installment repayments will mitigate the impact on consolidated performance post-2027 fiscal year. Any significant developments related to this financing will be promptly communicated.
🟡 Confidence: Standard AI-translated content.