TOKYO, May 12 (Pulse News Wire) – Tokyu Corporation (9005.T) outlined plans to issue hybrid equity-bond instruments known as "bond-type special shares" to enhance capital efficiency while maintaining shareholder interests. The move aims to bolster its financial strategy by ensuring a balanced sheet and securing diverse funding options without significantly impacting ordinary shareholders' returns.
According to the company, the issuance would help maintain robust financial stability through continuous investment inArea Kachi's development, crucial for sustained growth and maximizing enterprise value. The proposed bond-type special shares would offer a cost-effective funding method compared to traditional share issues, potentially lowering capital costs below those associated with ordinary shares.
Tokyu emphasized that these special shares would lack voting rights and conversion privileges, prioritizing dividend payments above set thresholds, thereby protecting ordinary shareholders’ interests. The company also intends to explore listing these securities on the Tokyo Stock Exchange Prime Market to broaden investor accessibility.
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