News

AISIN Corporation (hereinafter the “Company”) submitted an optional repayment notice to MUFG Bank Ltd., as the arranger to make an optional repayment scheduled for March 31, 2026, of a total of JPY 25 billion for the hybrid loan (Tranche A: JPY 25 billion) executed on March 31, 2020.
In addition, the Company will not refinance with a subordinated debt due to this optional repayment.

The Company raised a total of JPY 272.5 billion^※１ through a hybrid bond issuance on February 28, 2020, and a hybrid loan on March 31, 2020, for acquisition of shares in AISIN AW Co., Ltd, following a business integration of AISIN SEIKI CO., LTD. (currently known as AISIN CORPORATION)
Hybrid financing plays an important role in the Company’s capital structure and the Company believes it is a beneficial measure to improve capital efficiency while ensuring financial security.
Therefore, while maintaining the basic policy of refinancing through hybrid finance, we have reached the decision to carry out the aforementioned voluntary early redemption after comprehensively considering the recent financial situation and other relevant factors.

The Company, which follows financial strategy based on the fundamental policy of maintaining a balance between financial security and capital efficiency while raising corporate value, believes that the capitalization ratio^※2 of approximately 25% to 30% is optimal for its capital structure. The Company will continue to utilize hybrid financing to support growth investment and improve capital efficiency.

*1 As of the time of this disclosure, the balance of hybrid finance is 252.5 billion yen, and after the early redemption of this loan, the hybrid finance balance will be 227.5 billion yen.
*2 Capitalization ratio = interest bearing debt (bonds, loans and lease liabilities)/ shareholders’ equity (net assets) + interest bearing debt