TOKYO, Mar 30 (Pulse News Wire) – Novac CO.,LTD. (5079.T) announced today that its board of directors held , approved the signing of a syndicated loan agreement with financial covenants based on the ESG/SDGs promotion analysis syndication.
The primary purpose of this financing is to secure funds for the construction of the company's new headquarters building, which was previously disclosed on July 15, 2025. The loan agreement includes several key points: - Amount: ¥4.600 billion - Signing Date: March 31, 2026 (tentative) - Type: Commitment-type syndicate loan - Term: From March 31, 2026, to March 31, 2048 - Purpose: Equipment funding - Interest Rate: Benchmark rate plus spread - Security: Real estate collateral without guarantees Participating financial institutions include Sumitomo Mitsui Banking Corporation (arranger and agent), Mitsubishi UFJ Bank (co-arranger), Minato Bank, Tomakomai Bank, Himeji Shinkin Bank, Hyogo Shinkin Bank, China Bank, Iyo Bank, Yamaguchi Kogyo Bank, Hyobu Bank, and Nishi-Hyogo Shinkin Bank. Financial covenants stipulate maintaining total equity on consolidated balance sheets at or above either 1.2 times the amount recorded as of April 30, 2025, or 1.1 times the amount recorded as of the latest fiscal year-end. Additionally, the company must avoid consecutive two-year operating losses.
In conjunction with the loan, NOVAC received feedback on its ESG initiatives and SDGs contributions through an evaluation framework developed by Sumitomo Mitsui Banking Corporation and Nippon Institute of Finance. The assessment recognized NOVAC’s efforts towards sustainable development goals and transparent reporting. Regarding future outlook, the company anticipates minimal impact on its consolidated performance for the fiscal year ending April 2026. Any significant developments requiring further disclosure will be communicated promptly.
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