SUMIDA: Investor News

Notice concerning Raising Funds by Perpetual Subordinated Loan

October 30th 2018
Press Release

SUMIDA CORPORATION (“SUMIDA”) hereby announces today that the agreement to get a perpetual subordinate loan in the amount of five billion yen has been concluded with the Mizuho Bank.

  1. Purposes of the subordinate loan

SUMIDA decided to raise funds thorough the subordinated loan from the Mizuho Bank to finance the mid-term business plan Stage III (2018-2021) that had been announced in February this year. In that plan SUMIDA aims to implement growth strategies as well as to maintain a healthy financial position. The funds obtained from this loan will be used for capital investments and repayments of the existing interest-bearing loans.

According to IFRS, this perpetual subordinated loan is classified as an equity instrument and the funds obtained from this loan will be put in equity in the consolidated balance sheet. 

  1. Overview of the subordinated loan
(1) Amount 5 billion yen
(2) Contract date October 29, 2018
(3) Execution date October 31, 2018
(4) Repayment date No repayment date specified
Provided, however, that on each interest payment date, optional repayment of all or part of the principal is possible
(5) Use of funds Capital investments and repayment of the existing loans
(6) Interest rate Variable interest rate base on 3-month Japanese yen TIBOR
(7) Clauses relating to interest payment Optional deferral of interest payment is possible
(8) Lender Mizuho Bank, Ltd.