TOKYO, Mar 13 (Pulse News Wire) – Tess Holdings CO.,LTD. (5074.T) announced today that its subsidiary, TES Engineering Co., Ltd., has entered into a loan agreement with financial covenants.
The agreement was established through a syndicate led by Sumitomo Mitsui Banking Corporation with a total commitment amount of 2794. Under the terms of the loan, TES Engineering will maintain its net assets at least equal to either 80% of the net asset value reported as of June 30, 2021, or 80% of the net asset value reported at the end of the previous fiscal year, whichever is higher. Additionally, the company must ensure that its ordinary profit does not show a loss at the end of each fiscal year. The loan agreement was signed, with a principal amount of ¥8.100 billion.
The repayment deadline is set for April 30, 2026. The loan is unsecured and allows for monthly drawdowns based on operational needs. Looking ahead, TESS Holdings anticipates that the impact on its consolidated performance for the fiscal year ending June 2026 will be minor. However, the company plans to make further disclosures should there be significant effects on future consolidated results.
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