Wakachiku Construction TO TAKE OUT LOAN OF 7 billion UNDER COMMITMENT LINE AGREEMENT

TOKYO, Jul 21 (Pulse News Wire) – Wakachiku Construction CO.,LTD. (1888.T) decided to implement a loan based on a commitment line agreement signed with ten financial institutions.

The purpose of the loan is to efficiently secure working capital. The loan amount will be used to repay existing borrowings of ¥5 billion and take out a new loan of ¥7 billion. The transaction is scheduled to occur on July 24, 2026. The lenders consist of trust banks, urban banks, and regional banks.

The loan will be interest-bearing and unsecured, with repayment due on August 07, 2026. Financial covenants stipulate maintaining net assets at least at 75% of either the fiscal year ending March 2025 or the immediately preceding fiscal year-end balance sheet figures. Additionally, the company must avoid consecutive losses in ordinary income over two fiscal years. This financing move is expected to have a minor impact on the company's performance.