Tokyo Century Plans Hybrid Bond Issue Amid Financial Strategy Goals

TOKYO, Aug 03 (Pulse News Wire) – Tokyo Century Corporation (8439.T) announced plans to issue hybrid bonds with subordination clauses to enhance liquidity and support its financial strategy. The issuance aims to maintain credit ratings and ensure financial health while diversifying funding sources.

The company expects the bonds to be recognized as capital-like instruments by rating agencies, potentially boosting overall group financing capabilities and reducing costs. Key features of the proposed bonds include interest deferral options, long-term repayment schedules, and junior status in liquidation proceedings. Tokyo Century anticipates raising funds through ordinary shares or equivalent securities if early redemption occurs within 12 months prior to maturity.

However, under certain financial conditions, refinancing might be skipped post-first optional redemption date. The company will finalize interest rates and other terms based on market conditions and promptly inform stakeholders once decisions are made. The issuance aligns with the firm's growth investment plan exceeding ¥2.00 trillion million, set to commence in fiscal 2026 as part of its Mid-Term Business Plan 2030.