Financial covenant risk relating to syndicated loans and other borrowings
First written in FY2016. 4 of 10 entries say "Worsened", first in FY2019. Latest entry: FY2026.
Nippon Concrete Industries moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 57 companies on the "Worse" side.
3 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「As of 26 March 2026, the company has entered into a syndicated commitment line agreement with Mizuho Bank, Ltd. as arranger.」
As of 26 March 2026, the company entered into a new syndicated commitment line agreement with a funding limit of ¥5 billion and a commitment period from 31 March 2026 to 30 March 2029, with financial covenants requiring net assets of at least ¥28 billion, maintenance at or above 75%, and avoidance of ordinary losses for 2 consecutive fiscal years. - FY2025AdvancedAnnual report
「The commitment line agreement entered into with Mizuho Bank, Ltd. on 26 March 2025 contains the following covenants: ・Maintain consolidated net assets, as reported in the equity section of the consolidated balance sheet at each fiscal year-end and second-quarter-end, at least at 75% of the net assets at the immediately preceding fiscal year-end or second-quarter-end and at least ¥28 billion. ・Ensure that ordinary profit or loss reported in the consolidated income statement at each fiscal year-end does not constitute a loss for 2 consecutive fiscal years.」
As of 26 March 2025, 2 commitment line agreements had been entered into, and additional financial covenants requiring net assets of at least ¥28 billion, maintenance at or above 75%, and avoidance of ordinary losses for 2 consecutive fiscal years were disclosed. - FY2024WorsenedAnnual report
「(6) The commitment line agreement entered into with Mizuho Bank, Ltd. on 26 March 2024 contains the following covenants: ・Maintain consolidated net assets, as reported in the equity section of the consolidated balance sheet at each fiscal year-end and second-quarter-end, at least at 75% of the net assets at the immediately preceding fiscal year-end or second-quarter-end and at least ¥28 billion. ・Ensure that ordinary profit or loss reported in the consolidated income statement at each fiscal year-end does not constitute a loss for 2 consecutive fiscal years.」
A commitment line agreement was added in March 2024, with financial covenants requiring net assets of at least ¥28 billion, maintenance at or above 75%, and avoidance of ordinary losses for 2 consecutive fiscal years. - FY2023WorsenedAnnual report
「(6) The commitment line agreement entered into with Mizuho Bank, Ltd. on 28 March 2023 contains the following covenants: ・Maintain consolidated net assets, as reported in the equity section of the consolidated balance sheet at each fiscal year-end and second-quarter-end, at least at 75% of the net assets at the immediately preceding fiscal year-end or second-quarter-end and at least ¥28 billion. ・Ensure that ordinary profit or loss reported in the consolidated income statement at each fiscal year-end does not constitute a loss for 2 consecutive fiscal years.」
A new commitment line agreement was entered into in March 2023, with financial covenants requiring net assets of at least ¥28 billion, maintenance at or above 75%, and avoidance of ordinary losses for 2 consecutive fiscal years. - FY2022WorsenedAnnual report
「The commitment line agreement entered into with Mizuho Bank, Ltd. on 29 March 2022 contains the following covenants: ・Maintain consolidated net assets, as reported in the equity section of the consolidated balance sheet at each fiscal year-end and second-quarter-end, at least at 75% of the net assets at the immediately preceding fiscal year-end or second-quarter-end and at least ¥28 billion. ・Ensure that ordinary profit or loss reported in the consolidated income statement at each fiscal year-end does not constitute a loss for 2 consecutive fiscal years.」
Multiple term loans and commitment lines were added in 2022, with financial covenants requiring net assets of at least ¥28 billion and at least 75% of the prior period, and avoidance of ordinary losses for 2 consecutive fiscal years. - FY2021RaisedAnnual report
「The commitment line agreement entered into with Mizuho Bank, Ltd. on 31 March 2021 contains the following covenants: ・Maintain consolidated net assets, as reported in the equity section of the consolidated balance sheet at each fiscal year-end and second-quarter-end, at least at 75% of the prior-year corresponding period and at least ¥28 billion. ・Ensure that ordinary profit or loss reported in the consolidated income statement for each fiscal year-end does not constitute a loss for 2 consecutive fiscal years from the fiscal year ending March 2021 onward.」
The new commitment line agreement includes requirements to maintain net assets of at least ¥28 billion and at least 75% of the prior-year corresponding period, as well as a requirement to avoid losses for 2 consecutive fiscal years from the fiscal year ending March 2021 onward. - FY2019WorsenedAnnual report
「The commitment line agreement entered into with Mizuho Bank, Ltd. on 29 March 2019 contains the following covenant: ・Maintain consolidated net assets, as reported in the equity section of the consolidated balance sheet at each fiscal year-end and second-quarter-end, at least at 75% of the prior-year corresponding period and at least ¥27.3 billion.」
A new commitment line agreement and financial covenants were added, with maintenance requirements including net assets of at least ¥27.3 billion disclosed. - FY2018RestatedAnnual report
「The company has entered into syndicated loan agreements with 2 financial institutions and a commitment line agreement with 1 financial institution. These agreements contain financial covenants requiring the amount of consolidated net assets in the equity section of the consolidated balance sheet and the amount of profit or loss in the consolidated income statement at each fiscal year-end and second-quarter-end after the agreement dates to be maintained above specified thresholds.」
The company continues to disclose syndicated loans, commitment lines and the risk of repayment obligations upon breach of financial covenants. - FY2017RestatedAnnual report
「The company has entered into a syndicated loan agreement with 1 financial institution and a commitment line agreement with 1 financial institution. These agreements contain financial covenants requiring the amount of consolidated net assets in the equity section of the consolidated balance sheet and the amount of profit or loss in the consolidated income statement at each fiscal year-end and second-quarter-end after the agreement dates to be maintained above specified thresholds.」
The company continues to disclose the risk of repayment obligations upon breach of financial covenants relating to syndicated loans, commitment lines and term loans. - FY2016First statedAnnual report
「Maintain consolidated net assets, as reported in the equity section of the consolidated balance sheet at each fiscal year-end and second-quarter-end, at at least 75% of the prior-year corresponding period and at least ¥25 billion.」
The company discloses that a breach of financial covenants may result in an obligation to repay borrowings.