- 2001/04/12
- Tomoe Engineering establishes 3 billion yen loan commitment lines with banks
Tomoe Engineering entered into the new loan agreements with 5 banks. The agreements grant Tomoe the 3 billion-yen commitment lines in total. The first drawdown from the credit facilities will be made on April 27. Extension of these facilities enables us to reduce the loan balances by 2 billion-yen and save interests on them.
The agreements were made with Fuji Bank, Sumitomo Mitsui Bank, Tokyo Mitsubishi Bank, Sanwa Bank and DKB in amount of 1,020 million yen, 1,050 million yen, 400 million yen, 320 million yen and 210 million yen respectively. 7 million yen were paid in total as commissions for these facilities, which are effective till March 28, 2002.
It has been a general practice of Japanese banks to extend non-commitment line facilities even to their valued customers, requiring compensation deposit accounts with them. They have been reluctant to extend commitment facilities, as they want to secure their lending freedom in time of tight money.
The agreements were made with Fuji Bank, Sumitomo Mitsui Bank, Tokyo Mitsubishi Bank, Sanwa Bank and DKB in amount of 1,020 million yen, 1,050 million yen, 400 million yen, 320 million yen and 210 million yen respectively. 7 million yen were paid in total as commissions for these facilities, which are effective till March 28, 2002.
It has been a general practice of Japanese banks to extend non-commitment line facilities even to their valued customers, requiring compensation deposit accounts with them. They have been reluctant to extend commitment facilities, as they want to secure their lending freedom in time of tight money.
Released on April 12, 2001