Interest Rate Risks

The business operations of the Company require a huge investment capital source to invest in long-term projects. A large proportion of the required capital has been raised by borrowing from banks and issuing corporate bonds at a floating interest rate. If the interest rate gets increased, the borrowing costs become more burdensome and adversely affect the Company’s businesses.

Risk management measure:

The Company has proactively set up a capital structure appropriate for each economic cycle and operation. Thanks to long-term relationships with major commercial banks, the Company can arrange credit facilities at reasonable costs. Beside loans and straight bonds, the Company also raises capital from share issuance.