Early Redemption Risk of Bonds with Financial Covenants
First written in FY2022. 2 of 4 entries say "Mitigated", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2025: 23 of 75 companies on the "Worse" side.
28 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The company was not in breach of the above financial covenants at the end of the fiscal year.」
The financial covenants were expanded to overdraft and commitment-line agreements, with conditions concerning profitability, net assets, deposits and borrowings. The company was not in breach of the covenants at the end of the fiscal year. - FY2025ReframedAnnual report
「Among the overdraft agreements entered into by the consolidated subsidiary トレイダーズ証券, the agreement with one of its transaction banks contains the following financial covenants: ① From the fiscal year ending March 2025 onward, ordinary profit in the income statement at the end of each fiscal year must not be negative for 2 consecutive fiscal years. ② From the fiscal year ending March 2025 onward, net assets in the balance sheet at the end of each fiscal year must be at least 75% of the higher of the figures for the fiscal year ending March 2024 and the immediately preceding fiscal year.」
The previous bonds with financial covenants were redeemed in October 2024, and the focus shifted from the risk of early redemption to financial covenants in the overdraft agreement concerning recurring losses and net asset levels. - FY2023MitigatedAnnual report
「As of 31 March 2023, the capital adequacy ratio of トレイダーズ証券 was 481.1%.」
Against the financial covenant threshold of a capital adequacy ratio of 140% or lower, the actual ratio was 481.1%, up from 466.1% at the end of the previous fiscal year. - FY2022First statedAnnual report
「トレイダーズ証券 has issued bonds with financial covenants, with an outstanding balance of ¥700 million as of 31 March 2022. If the financial covenants are breached due to factors such as deterioration in the performance of トレイダーズ証券 and a decline in its capital adequacy ratio, トレイダーズ証券 may be required to immediately redeem the bonds.」
The company newly disclosed separately the risk that bonds with financial covenants and an outstanding balance of ¥700 million may require early redemption if the capital adequacy ratio is 140% or lower at the end of each month, among other conditions.