Daiwa House Industry Co., Ltd. signed a contract for financing Subordinated Syndicated Loan (hereinafter "the Loan") as follows. The Loan is a form of hybrid financing with an intermediate nature between equity and debt, and while it does not cause dilution of the value of shares per share due to its indebtedness, it has characteristics similar to equity, such as voluntary deferral of interest, extremely long maturity, and subordinability in liquidation and insolvency proceedings. Therefore, the Loan is expected to be evaluated for equity credit on 50% of the financing amount from Rating and Investment Information Inc. (R&I) and from Japan Credit Rating Agency, Ltd.(JCR).
Amount to be borrowed JPY 65 billion. Date of agreement June 30, 2025.) Drawdown date October 31, 2025. Maturity date October 31, 2060.
However, the Company may prepay all or part of the principal of the Loan on each interest payment date on or after October 31, 2030. The funds will be used for early repayment of the hybrid loan executed on October 30, 2020. In the case of early repayment of the Loan, the Company is intended that the Loan will be refinanced with funding approved by a rating agency with an equity credit equal to or higher than the Loan during the 12 months prior to the date of early repayment.
However, if certain financial conditions are met at the time of early repayment, it may be possible to forgo refinancing the Loan with funds recognized by rating agencies as having the same or higher capital nature.
