TOKYO, Mar 19 (Pulse News Wire) – Tetsujin Holdings,inc. (2404.T) announced today that its board of directors approved the renewal of its commitment line agreement aimed at securing operational funding.
The updated agreement involves a total amount of ¥600 million, with participating banks being Yokohama Bank (¥400 million) and Chukyo Central Cooperative Bank (¥200 million). The renewed contract will take effect on March 19, 2026 and will run until March 31, 2026. It includes a repayment method based on individual drawdown periods of either one month or three months within the commitment period.
Interest rates are set at Tibor plus 1.1% for Yokohama Bank and Tibor plus 1.3% for Chukyo Central Cooperative Bank. The agreement remains unsecured but backed by joint guarantees from ten wholly-owned subsidiaries. In terms of future outlook, the company expects the impact on its consolidated performance for the fiscal year ending August 2026 to be minor.
Financial covenants stipulate maintaining net assets in the balance sheet's equity section at least at the level of 75% compared to the previous term-end and avoiding consecutive losses in ordinary profit for two consecutive periods.
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