Wakachiku Construction Secures New Loan Facility Amid Operational Needs

TOKYO, Jun 29 (Pulse News Wire) – Wakachiku Construction CO.,LTD. (1888.T) decided to implement a loan facility based on a commitment line agreement signed with ten financial institutions to efficiently manage working capital.

The loan, set to be executed on June 30, 2026, involves repaying existing borrowings of ¥7 billion and securing a new borrowing amount of ¥6 billion. The repayment deadline for this transaction is scheduled for July 07, 2026.

Notably, the loan does not require collateral and includes financial covenants stipulating that the net assets on the balance sheet at the end of each fiscal year should remain at least 75% higher than the larger figure between the net asset value at the end of the fiscal year 2025 or the immediately preceding fiscal year. Additionally, the company must ensure that ordinary income is not negative for two consecutive fiscal years.

Looking ahead, the company anticipates minimal impact on its performance due to this financing move.