The Japanese technology firm enters a new agreement which will see ¥100 billion ($91 million/ €76 million) funded through an innovative hybrid loan
Konica Minolta announced in August that it was entering an agreement that would secure the firm funding of ¥100 billion ($91 million/ €76 million) through a hybrid loan.
According to the company’s press release, the loan is of “an intermediate nature between equity and liabilities” meaning it features aspects such as “optional deferral of interest payments, an especially long repayment term and subordination in bankruptcy proceedings.” As a result, the loan “is expected to be evaluated for equity credit on 50% of the funding by Rating and Investment Information, Inc. and Japan Credit Rating Agency, Ltd., thereby contributing to substantially strengthening the financial standing without dilution of shares.”
The drawdown date given for the loan is 31 October 2017 and the maturity date is 29 October 2077.
The aim of the funding is to enable Konica Minolta to speed up its transition to becoming a high-profitability company as well as “a digital company with insight into implicit challenges”, achieving this under the new SHINKA 2019 medium-term business plan, which came into effect in April 2017.