Okumura has set the terms of its first social bond, which will pay for ending 60-day notes to subcontractors: ¥15bn of unsecured debt at 2.704% a year, maturing on 15 October 2029. The shelf registration supplement also gives a timetable for the proceeds. The company plans to commit the whole net ¥14.936bn by the end of December 2026.
The terms
The bonds are issued at 100 per ¥100 in ¥100mn denominations, with the application period on 8 October 2026 and payment on 15 October. Interest is paid every 15 April and 15 October, starting 15 April 2027, and the principal comes back in one payment at maturity. The bonds carry no collateral or guarantee, and the supplement names no bond administrator. Resona Bank is the fiscal agent.
| Term | Detail |
|---|---|
| Issue | First unsecured social bond, ¥15bn |
| Coupon | 2.704% a year, paid 15 April and 15 October |
| Maturity | 15 October 2029 |
| Payment date | 15 October 2026 |
| Credit rating | A- (JCR), dated 8 October 2026 |
| Net proceeds | ¥14.936bn after ¥64mn estimated costs |
| Planned use | Added working capital for cash payments to subcontractors, planned by end-December 2026 |
Daiwa Securities, Nomura Securities and SMBC Nikko Securities underwrite the issue on a firm-commitment basis, with ¥7.5bn, ¥6bn and ¥1.5bn respectively. The underwriting fee is 35 sen per ¥100. Issue costs are estimated at ¥64mn.
What the money is for
Okumura plans to use the proceeds as added working capital. The need arises because it is scrapping bill payments to subcontractors, including the debt-assumption variant, which ran on 60-day bill terms, and switching to full cash payment. The supplement notes that the Construction Business Act allows bills of up to 60 days. It cites rising materials prices and a future shortage of workers as the reason for the change, and says the aim is steadier partnerships across the supply chain.
The supplement gives no figure for how much extra working capital the switch requires, so the link between ¥14.936bn and the payment change rests on the company's own description.
Safeguards and reporting
The issue is rated A- by Japan Credit Rating Agency (JCR), dated 8 October 2026. Okumura's social finance framework, drawn up in September 2026, separately received JCR's top framework grade, Social 1(F). That grade assesses how proceeds are managed and reported; it is not a credit rating.
The bonds have a negative pledge: if Okumura gives security for other domestic unsecured bonds it issues after this one, it must give these bonds equal-ranking security. Unsecured bonds that carry a collateral-switching clause are excluded. The bonds carry no net-asset maintenance or other financial covenants. Okumura says it will disclose on its website each year, as far as reasonably practicable, until the proceeds are fully allocated: the amount spent, any unspent balance and its expected timing, plus the share of subcontractors paid in cash and the number covered. It says it will disclose promptly if the allocation plan changes materially.
The bonds are the first draw on a ¥50bn shelf registration that took effect on 12 March 2026 and runs to 11 March 2028.