Ki-Star Real Estate (TYO:3465) will renew and increase its existing credit limits to secure stable funding for land acquisition in its core homebuilding and sales business and strengthen its financial base.
The agreement with Mizuho Bank raises the special overdraft limit by 8 billion yen to 13 billion yen, effective Sept. 30, for a one-year term, according to a Tokyo bourse filing on Friday.
The agreement with MUFG Bank increases its overdraft limit by 5 billion yen to 11.5 billion yen, also effective Sept. 30, for a one-year term.
Both loans carry floating interest rates, are collateralized by the land acquired, and include financial covenants requiring minimum net assets and profitability thresholds.
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