【JALCO Holdings】Implementation of Fundraising and Bond Redemption｜May 2026

Overview of Fundraising

On May 22, 2026, the company redeemed a total of JPY 1.7 billion of bonds through early repayment of the 3rd and 5th unsecured ordinary bonds. On the same day, the company issued JPY 2.0 billion of the 12th unsecured ordinary bonds with Catalyst Corporation as underwriter, and lowered the interest rate to 3.0% per annum. This measure aims to reduce financial expenses and enhance fundraising flexibility. The background of this fundraising is to secure funds for growth investments such as income-producing real estate and energy storage battery businesses. This bond issuance is a strategic funding move that simultaneously repaid existing high-interest debt and increased the total raised while reducing costs.

Future Outlook and Corporate Strategy

This development is expected to stabilize the company's cash flow and provide flexibility for future growth investments. The increased fundraising amount and lowered interest rate are projected to reduce annual interest expenses by approximately JPY 42 million, strengthening the financial base. Note that this transaction involves related parties and has been approved with the careful consideration of the Board of Directors and minority shareholders' protection. Going forward, the company aims to maintain flexible fundraising capabilities while expanding its business and improving profitability.