| January 8, 2004 |
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| Company Name: |
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ISEKI & CO., LTD. |
| Company representative: |
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Hiroyuki Nakano, President |
| Company code: |
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6310 |
| Stock Exchange Listings: |
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First Section, Tokyo Stock Exchange |
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First Section, Osaka Securities Exchange |
| Enquiries: |
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Kazuyoshi Sonoda, Director
(Telephone: +81-3-5604-7710) |
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| To whom it may concern, |
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Notice concerning the syndication-style
establishment of commitment lines
and term loan contracts |
Iseki & Co., Ltd. hereby gives notice that a decision has been made to set
up a large- scale syndication made up of commitment lines and term loans worth
a total of  40 billion and that an agreement was made among relevant financial
institutions. |
| 1. |
Details of syndication setup |
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Commitment
Line |
Commitment
Line |
Term
Loan |
Term
Loan |
| Contract total |
10 billion |
15 billion |
5 billion |
10 billion |
| Contract date |
December 30, 2003 |
December 25, 2003 |
| Arrangers |
Mizuho Corporate Bank, Ltd.
The Norinchukin Bank
The Chuo Mitsui Trust and
Banking Company, Limited
The Iyo Bank, Ltd. |
Mizuho Corporate Bank, Ltd. |
| Agent |
Mizuho Corporate Bank, Ltd. |
Number of
participating
financial institutions |
4 |
12 |
31 |
29 |
Term of contract
(loan) |
1-year from December 30, 2003 |
1-year from December 30, 2003 |
5-years from December 30, 2003 |
3-years from December 30, 2003 |
| Interest rate level |
Variable interest rate (market interest rate set as base) |
| 2. |
Reasons for entering contract and
effects of implementation |
| (1) |
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As part of balance sheet management, these contracts will work to improve
such financial indicators as working capital ratio, long-term financing ratio
and debt to equity ratio. They will also enhance the efficiencies of funding and
curtail the net interest expense.
Specifically, with the full cooperation of the main financing banks and all the
financial institutions involved, at the same time we implement these contracts,
we will repay existing short-term borrowings. This will further enhance our financial
base by accelerating the reduction of interest-bearing liabilities. |
| (2) |
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The implementation of these contracts will also bring forward the strategies
to lower the interest-bearing liabilities 
one of the key objectives of our three-year Business Plan.
These contracts will not effect any great change to Iseki's existing arrangements
with the financial institutions. |
| (Reference) |
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A commitment line is a source of funds that can be accessed time
and again as necessary, within amounts and terms agreed in advance between the
borrower and the cooperating financial institution(s). |
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A term loan is a form of medium and long-term business finance, with a fixed
repayment period of longer than one year, and which is repaid as a lump sum or
in installments. |
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