TOKYO, Mar 24 (Pulse News Wire) – iShares 1-3 Year US Treasury Bond ETF (262A.T) announced today that its board of directors approved a syndicated loan agreement with financial covenants. The agreement, finalized on March 24, 2026, includes a borrowing amount of ¥12.00 billion and a term from September 24, 2025 to March 31, 2033.
The loan's interest rate is set at one-month TIBOR plus 0.50%. The purpose of this loan is to repay existing borrowings due on March 31, 2026, and to stabilize long-term funding while maintaining and strengthening the company’s financial foundation. Additionally, the agreement stipulates that the consolidated balance sheet equity total at December 31, 2026, and subsequent fiscal years should remain at least equal to either 2025's end-of-year figure or the highest value from recent fiscal years.
Furthermore, the agreement requires consecutive two-year profitability without operating losses. An arrangement fee of ¥90 million will also be incurred based on this contract. Notably, the existing borrowing of ¥18.00 billion is part of a broader credit facility totaling ¥10.00 billion, with plans to execute additional borrowings up to ¥6 billion prior to repayment.
Looking ahead, the company expects the interest and fees associated with this loan to be reflected in its current earnings forecast.
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