Rising Interest Rates and Financial Covenants under Borrowing Agreements
First written in FY2018. 1 of 3 entries say "Restated". Latest entry: FY2024.
22 other companies' latest entry also says "Other".
- FY2024Interest rate risk explicitly identifiedAnnual report
「The Company finances working capital and capital expenditures mainly through borrowings from financial institutions. If interest rates enter an upward trend in the future, higher interest expenses and other interest-related costs could worsen the financial balance and affect the operating results and financial position of the Company Group.」
In addition to the existing risk associated with financial covenants, the risk that rising interest rates resulting from reliance on borrowings could increase interest expenses and worsen the financial balance was explicitly identified as a major risk. - FY2019RestatedAnnual report
「If the Company breaches the financial covenants under its borrowing agreements, it may be required to pay higher interest rates or lose the benefit of time on its obligations, which could affect its borrowing costs and ability to raise funds.」
The financial covenants requiring net assets of 75% or more, no ordinary loss, and a 15-times threshold relating to interest-bearing debt and other items continue to apply. - FY2018First statedAnnual report
「If the Company breaches the financial covenants under its borrowing agreements, it may be required to pay higher interest rates or lose the benefit of time on its obligations, which could affect its borrowing costs and ability to raise funds.」
The covenants require the Company to maintain net assets at 75% or more, avoid recording an ordinary loss, and meet a 15-times threshold relating to interest-bearing debt and other items.