Daito Trust Construction, the Tokyo-based builder of rental apartments, resolved to borrow ¥105bn through three separate loan agreements, all carrying financial covenants that tie the company's future flexibility to its balance sheet. The board approved the package on September 18, 2026, with contracts due to be signed September 25 and funds due to be drawn September 30.
The largest slice is a ¥50bn syndicated facility arranged by Mizuho Bank, split into two ¥25bn tranches maturing September 2036 and March 2034. A second syndicated loan, arranged by Sumitomo Mitsui Banking Corporation, adds ¥35bn maturing September 2031, while Mitsubishi UFJ Bank supplies a ¥20bn bilateral loan maturing the same month. All three price off TIBOR plus an undisclosed spread and repay in a single bullet payment at maturity.
| Facility | Amount | Arranger / lender | Maturity | Key covenant |
|---|---|---|---|---|
| SMBC syndicated loan | ¥35bn | Sumitomo Mitsui Banking Corporation | September 2031 | Net assets at or above 50% of the March 2026 level, checked quarterly |
| Mizuho syndicated loan, Tranche A | ¥25bn | Mizuho Bank | September 2036 | Net assets at or above 50% of the March 2026 level, checked annually from the fiscal year ending March 2027; no ordinary-income loss |
| Mizuho syndicated loan, Tranche B | ¥25bn | Mizuho Bank | March 2034 | Same as Tranche A |
| MUFG bilateral loan | ¥20bn | Mitsubishi UFJ Bank (bilateral lender, no arranger disclosed) | September 2031 | Net assets at or above 50% of the March 2026 level, checked quarterly; ordinary income at or above ¥0 from the fiscal year ending March 2027 |
The covenants are where the package gets interesting for anyone tracking balance-sheet resilience. Every facility requires Daito Trust to keep consolidated net assets at or above 50% of the level recorded at the close of the fiscal year ended March 2026, checked quarterly under the SMBC and MUFG loans and annually from the fiscal year ending March 2027 under the Mizuho facility. The Mizuho and MUFG loans add a profitability test: consolidated ordinary income must not turn negative under the Mizuho tranches, and must stay at zero or above under the MUFG loan, starting with the fiscal year ending March 2027. The notice does not specify how much headroom the company currently holds against either threshold.
Daito Trust said the borrowing is meant to secure funds for group growth investment and to build a more stable, longer-dated funding base as it strengthens its financial position. Management expects the arrangement to have only a minor effect on results for the fiscal year ending March 2027, and said it will disclose promptly if that assessment changes.
The lender list extends beyond the two megabanks arranging the syndicated loans: SBI Shinsei Bank, Resona Bank, Shizuoka Bank and Shikoku Bank take part in the SMBC loan, and more than a dozen regional banks, including Gunma Bank, Yokohama Bank and Kitakyushu Bank, join the Mizuho tranches.