Provision of Financing to Takamatsu-Kotohira Electric Railroad via Jointly Arranged Syndicated Loan with Hyakujushi Bank (Special Investment Operations)

DBJ and the Hyakujushi Bank, Ltd., jointly arranged a syndicated loan for Takamatsu-Kotohira Electric Railroad Co., Ltd. (headquarters: Takamatsu, Kagawa Prefecture).

Takamatsu-Kotohira Electric Railroad operates three lines, mainly in the city of Takamatsu. This local railway operator is known by the moniker Kotoden. The company is undertaking local development, centering around the Kawaramachi Building (Kawaramachi FLAG). In the next medium-term management plan, in accordance with the city's urban planning, the company plans to construct two new stations in areas where the population is growing. In addition, the company aims to improve public transportation convenience and increase ridership by constructing a double-track section, and also by rebuilding a new peripheral public transportation network through collaboration with bus lines and other modes of transportation.

This project is to enhance the financial infrastructure of Takamatsu-Kotohira Electric Railroad by providing financing via a syndicated loan jointly arranged with Hyakujushi Bank. In addition, support is being given for the above growth investments via an equity subordinated loan (mezzanine financing). DBJ provided risk money though Special Investment Operations to not only promote the growth of Takamatsu-Kotohira Electric Railroad but also contribute to an improvement in the sustainability of the local transportation system.