Interest rate increases, refinancing constraints and funding liquidity risk
First written in FY2018. 5 of 17 entries say "Worsened", first in FY2024-Q3. Latest entry: 2026-08-07.
The whole theme swung hardest in 2022: 4 of 26 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026Increase in interest-bearing debt and capital-like loan financingAnnual report
「At the end of the current consolidated fiscal year, interest-bearing debt, including borrowings and lease liabilities, amounted to ¥150.055 billion.」
While interest-bearing debt increased to ¥150.055 billion, the Company executed a ¥10.5 billion perpetual subordinated loan to repay existing interest-bearing debt and recognized it as an equity instrument under IFRS. - FY2026-H1WorsenedAnnual report
「This was due mainly to a ¥1.472 billion decrease in long-term borrowings due for repayment within one year, despite increases of ¥9.730 billion in short-term borrowings and ¥2.121 billion in lease obligations.」
Short-term borrowings and lease obligations increased, causing current liabilities to rise 13.3% from the end of the previous fiscal year. Interest expense also increased from ¥2.408 billion in the same period of the previous year to ¥2.818 billion. - FY2025-H1MitigatedAnnual report
「Based on a resolution of the Board of Directors meeting held on 18 September 2024, the Company entered into a syndicated loan agreement dated 28 October 2024, with Mizuho Bank, Ltd. as arranger, for the purpose of refinancing funds raised to acquire shares in Autopact Pty Ltd.」
For the bridge loan associated with the acquisition of Autopact, the Company entered into a syndicated loan agreement on 28 October 2024 to refinance the loan. The loan amount was ¥12 billion, with a seven-year term, providing a specific response to short-term refinancing constraints. - FY2024Significant increase in interest-bearing debt due to acquisition-related borrowingsAnnual report
「At the end of the current consolidated fiscal year, interest-bearing debt, including borrowings, bonds and lease obligations, amounted to ¥102.118 billion.」
Interest-bearing debt increased to ¥102.118 billion in connection with the acquisition of Autopact and other factors, and short-term borrowings included a ¥23 billion bridge loan. Interest expense also increased. - FY2024-Q3Increase in short-term borrowings and bridge loans associated with acquisitionsAnnual report
「Of the increase in short-term borrowings, ¥23 billion comprises a bridge loan for the acquisition of Autopact Pty Ltd. The Company will subsequently switch to financing that takes into consideration the soundness of its financial statements.」
Short-term borrowings, including a ¥23 billion bridge loan, increased in connection with the acquisition of Autopact. The Company also indicated a policy of switching in the future to financing that takes into consideration the soundness of its financial statements. - FY2023RestatedAnnual report
「The Group obtains the funds necessary for its business through borrowings from financial institutions, most of which bear variable interest rates. In contrast, auto loans in the Services segment bear fixed rates set based on market interest rates at the time the contracts are entered into. Accordingly, the Group’s funding costs and the profitability of certain businesses are constantly affected by market interest rates.」
The Group continued to explain the interest rate risk arising from the combination of variable-rate borrowings and fixed-rate auto loans. - FY2022RestatedAnnual report
「The Group obtains the funds necessary for its business through borrowings from financial institutions, most of which bear variable interest rates. In contrast, auto loans in the Services business bear fixed rates set based on market interest rates at the time the contracts are entered into. Accordingly, the Group’s funding costs and the profitability of certain businesses are affected by market interest rates.」
The Group continued to explain the interest rate risk arising from the combination of variable-rate borrowings and fixed-rate auto loans. - FY2018First statedAnnual report
「The Group obtains borrowings from financial institutions at variable rates. If market interest rates rise sharply due to an abrupt change in economic conditions, disruption in financial markets or other factors, or if the Group’s financial condition deteriorates for any other reason and its creditworthiness declines, the contracted interest rates may increase.」
The potential impact on profitability and liquidity of variable-rate borrowings, fixed-rate auto loans and financing constraints at the time of refinancing was disclosed.