News Room 2007 (The former Furukawa-Sky)

  • twitter
  • facebook
Listen to this page

New Initiatives Implemented to Strengthen Financial Structure

November 7, 2007

Furukawa-Sky has decided to implement two new initiatives to strengthen our financial structure.
We will strive to develop a stronger financial structure by actively reducing interest-bearing debt based on the Furukawa-Sky Group Cash Management System (CMS) and reducing interest-bearing debt based on the development of a bare metal import financing scheme.
Details of the initiatives are provided below.

Reducing Interest-Bearing Debt Based on the Furukawa-Sky Group Cash Management System (CMS)

We will seek to reduce consolidated interest-bearing debt by raising the financing efficiency of the entire Group. Deposits held by domestic subsidiaries are collected and the funds allocated to domestic subsidiaries with loans from financial institutions.

  • Targeted domestic subsidiaries for the initial stage: 9 companies
  • Reduction in interest-bearing debt: approximately ¥1.5 billion
  • Utilization of system provided by Mizuho Corporate Bank, Ltd.

Reducing Interest-Bearing Debt Based on the Development of a Bare Metal Import Financing Scheme

Financial institutions will enter the import trade for aluminum bare metals to partially incorporate trading house functions toward developing a series of services, including inventory financing, accounts receivable financing and foreign exchange contracts.
This is the first scheme of its kind in Japan for reducing operational funds that had been rising due to surging bare metal prices in conventional direct purchasing.

  • Can be applied to any purchasing method for bare metals up to the maximum volume of directly purchased bare metals
  • Inventory compression results in cutting interest-bearing debt
  • Enables lower interest purchasing than conventional purchasing costs for operational funding
  • Jointly developed by Mizuho Corporate Bank, Ltd. and Tokyo Leasing Co., Ltd.