Risk of raising funds required for cover transactions
First written in FY2016. 11 of 18 entries say "Mitigated", first in FY2017-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
13 other companies' latest entry also says "Other".
- FY2026Full-year funding status updatedAnnual report
「Guarantee limit ¥8,000 million Term From 30 September 2025 to 30 September 2026 Participating financial institutions Sumitomo Mitsui Banking Corporation and 10 other financial institutions, for a total of 11 There were no guaranteed liabilities outstanding or breaches of any financial covenants at the end of the consolidated fiscal year.」
The guarantee limit, term and participating financial institutions for the bond facility agreement were confirmed for the full fiscal year. It is stated that there were no breaches of financial covenants. - FY2026-H1WorsenedAnnual report
「Guarantee limit ¥8,000 million Term From 30 September 2025 to 30 September 2026 Participating financial institutions Sumitomo Mitsui Banking Corporation and 10 other financial institutions, for a total of 11」
The bond facility agreement was renewed, but the guarantee limit decreased from the previous ¥12 billion to ¥8 billion. The term is from 30 September 2025 to 30 September 2026, and there are 11 participating financial institutions. - FY2025RestatedAnnual report
「The Group's basic policy is to secure a stable supply of the liquidity and funding sources required for business operations. Working capital is funded mainly by internal funds and borrowings from financial institutions and other sources.」
Continues to secure working-capital liquidity through internal funds, borrowings, overdrafts, bond facilities and other sources. - FY2025-H1MitigatedAnnual report
「At a meeting of the Board of Directors held on 14 August 2024, the Company resolved to enter into a bond facility agreement arranged by Sumitomo Mitsui Banking Corporation to ensure stable management in line with the expansion of its business, and concluded the agreement as follows. Guarantee limit ¥12,000 million Term From 30 September 2024 to 30 September 2025 Participating financial institutions Sumitomo Mitsui Banking Corporation and 10 other financial institutions, for a total of 11」
The Company renewed the bond facility agreement, with a guarantee limit of ¥12 billion and 11 participating financial institutions, for the period from 30 September 2024 to 30 September 2025, and continues to secure funding liquidity. - FY2024RestatedAnnual report
「The Group's basic policy is to secure a stable supply of the liquidity and funding sources required for business operations. Working capital is funded mainly by internal funds and borrowings from financial institutions and other sources.」
Continues to secure working-capital liquidity through internal funds, borrowings, overdrafts, bond facilities and other sources. - FY2024-Q2MitigatedAnnual report
「At a meeting of the Board of Directors held on 31 July 2023, the Company resolved to enter into a bond facility agreement arranged by Sumitomo Mitsui Banking Corporation to ensure stable management in line with the expansion of its business, and concluded the agreement as follows. Guarantee limit ¥12,000 million Term From 15 September 2023 to 30 September 2024 Participating financial institutions Sumitomo Mitsui Banking Corporation and 10 other financial institutions, for a total of 11」
The Company renewed the bond facility agreement, with a guarantee limit of ¥12 billion and 11 participating financial institutions, and entered into an agreement to secure funding liquidity from 15 September 2023 to 30 September 2024. - FY2023-Q2MitigatedAnnual report
「At a meeting of the Board of Directors held on 28 July 2022, the Company resolved to enter into a bond facility agreement arranged by Sumitomo Mitsui Banking Corporation in order to conduct stable operations as the business expanded, and concluded the agreement as described below. Guarantee limit: ¥12,000 million. Contract period: 16 September 2022 to 15 September 2023. Arranger: Sumitomo Mitsui Banking Corporation. Agent: Sumitomo Mitsui Banking Corporation. Participating financial institutions: Sumitomo Mitsui Banking Corporation and 10 other financial institutions, for a total of 11.」
The bond facility agreement, with a guarantee limit of ¥12 billion, a term from 16 September 2022 to 15 September 2023, and 11 participating financial institutions, was renewed, and funding liquidity continues to be secured. - FY2022WorsenedAnnual report
「However, if sharp movements in foreign exchange rates, changes in the prices of underlying assets or increases in customer positions occur, it may be necessary to increase the margin posted with counterparties. If the Group is unable to secure the funds for such margin, this could have a material impact on the Group's financial position, operating results and other matters.」
Following the launch of "LION CFD," the risk of increased margin requirements due not only to foreign exchange movements but also to changes in underlying asset prices and increases in customer positions was explicitly identified. - FY2022-Q2MitigatedAnnual report
「At a meeting of the Board of Directors held on 12 August 2021, the Company resolved to enter into a bond facility agreement arranged by Sumitomo Mitsui Banking Corporation in order to conduct stable operations as the business expanded, and concluded the agreement as described below. Guarantee limit: ¥12,000 million. Contract period: 17 September 2021 to 16 September 2022. Participating financial institutions: Sumitomo Mitsui Banking Corporation and 10 other financial institutions, for a total of 11.」
The Company renewed the bond facility agreement with a guarantee limit of ¥12 billion from 17 September 2021 to 16 September 2022, continuing to secure funding liquidity. Financial covenants were also established concerning a capital adequacy ratio of more than 200%, market risk equivalent amount, outstanding over-the-counter derivatives transactions and profit or loss. - FY2021MitigatedAnnual report
「Even after the spread of COVID-19, the Company has been able to secure sufficient liquidity for the funds necessary to operate the business, and the need for additional funding due to the impact of COVID-19 has not increased at this time.」
The Company states that it has continued to secure sufficient funding liquidity even after the spread of the infection and that the need for additional funding has not increased. - FY2021-Q2MitigatedAnnual report
「At a meeting of the Board of Directors held on 14 August 2020, the Company resolved to enter into a bond facility agreement arranged by Sumitomo Mitsui Banking Corporation in order to conduct stable operations as the business expanded, and concluded the agreement as described below. Guarantee limit: ¥12,000 million. Contract period: 18 September 2020 to 17 September 2021. Participating financial institutions: Sumitomo Mitsui Banking Corporation and 11 other financial institutions, for a total of 12.」
Following the expiration of the previous agreement, the Company renewed the bond facility agreement from 18 September 2020 to 17 September 2021, with a guarantee limit of ¥12 billion and 12 participating banks, continuing to secure funding liquidity. - FY2020RestatedAnnual report
「The Company's basic policy is to secure stable liquidity and sources of funds necessary for business operations. Working capital is funded mainly through internal funds and borrowings from financial institutions and other sources.」
Continues to secure working-capital liquidity through internal funds, borrowings, overdrafts, bond facilities and other sources. - FY2020-Q2MitigatedAnnual report
「Guarantee limit ¥12,000 million Contract period 20 September 2019 to 18 September 2020 Participating financial institutions Sumitomo Mitsui Banking Corporation and 11 other financial institutions, for a total of 12」
To support stable operations as the business expanded, the Company entered into an approximately 1-year bond facility agreement with a guarantee limit of ¥12 billion. The guarantee limit increased from the previously stated ¥9 billion, and there are now 12 participating financial institutions in total. - FY2019-Q2MitigatedAnnual report
「Bond facility agreement Guarantee limit ¥9,000 million Contract period 21 September 2018 to 20 September 2019 Participating financial institutions Sumitomo Mitsui Banking Corporation and 8 other financial institutions, for a total of 9」
To support stable operations as the business expanded, the Company entered into a 1-year bond facility agreement with a guarantee limit of ¥9 billion. The guarantee limit increased from the previously stated ¥6 billion, and there are now 9 participating financial institutions in total. - FY2018MitigatedAnnual report
「Total overdraft limits, commitment line agreements and revolving facility agreements: ¥9,300 million Outstanding borrowings: ¥7,600 million Unutilized amount: ¥1,700 million」
The Company states that total working-capital funding facilities amount to ¥9,300 million, with ¥1,700 million undrawn, and continues to maintain agreements securing the liquidity required for hedging transactions. - FY2018-Q2MitigatedAnnual report
「At a meeting of the Board of Directors held on 14 September 2017, the Company resolved to enter into a bond facility agreement arranged by Sumitomo Mitsui Banking Corporation in order to conduct stable operations as the business expanded, and concluded the agreement as described below. Guarantee limit: ¥6,000 million. Contract period: 21 September 2017 to 20 September 2018.」
To support stable operations as the business expanded, the Company newly entered into a 1-year bond facility agreement with a guarantee limit of ¥6 billion. Financial covenants were also established, including maintaining a capital adequacy ratio of more than 200%. - FY2017-Q2MitigatedAnnual report
「At a meeting of the Board of Directors held on 14 September 2016, the Company resolved to enter into a bond facility agreement arranged by Sumitomo Mitsui Banking Corporation in order to conduct stable operations as the business expanded, and concluded the agreement as described below. Guarantee limit: ¥6,000 million. Contract period: 21 September 2016 to 20 September 2017.」
To support stable operations as the business expanded, the Company entered into a 1-year bond facility agreement with a guarantee limit of ¥6 billion. Multiple financial covenants were also established, including maintaining a capital adequacy ratio of more than 200%. - FY2016First statedAnnual report
「The Company must maintain the capital adequacy ratio, calculated at the end of each month pursuant to Article 46-6, Paragraph 1 of the Financial Instruments and Exchange Act, at more than 200%.」
The overdraft, commitment line and bond facility contain financial covenants, and a breach could result in the loss of the benefit of time or the inability to obtain a guarantee.