Meiko Electronics Co., Ltd. announced a private placement of 70 first series bond type class shares at ¥100,000,000 per share for gross proceeds of ¥7,000,000,000 on September 21, 2022. Out of total proceeds ¥3,500,000,000 will go in capital reserve. The company signed an investment agreement with new investor Development Bank of Japan Inc. for issuance of securities pursuant to third party allotment method.

The shares will be entitled to a preferred dividend at a variable rate. The company will incur ¥314,000,000 as issuance cost and will receive ¥6,686,000,000 as net proceeds. The board of directors of the company approved the transaction.

The transaction is expected to close on October 25, 2022. The investor will have a lock in period for the shares until October 25, 2027. The shares can be redeemed in future.