Polaris Holdings Co., Ltd. announced that the board of directors of the company resolved to execute a loan agreement (hereafter the Loan Agreement) to borrow JPY 1,500 million for the prepayment of high interest loans from financial institutions in the Republic of the Philippines to significantly reduce the Polaris Group's interest costs. This will lead to the early redemption of a corporate bond (hereafter the Bond) held by Capital RE LLC, of which the sole investor is SAO III LLC. After completion, the company expects to reduce interest expenses by approximately JPY 216 million over a three-year period ending March 31, 2027.

Outline of the Loan Agreement: Lender: SAO III LLC; Borrowed Amount: JPY 1,500 million; Use of Funds: Repayment of the Philippine Domestic Borrowings; Borrowing Actual Date: April 12, 2024 (scheduled); Borrowing Period: March 31, 2027 (scheduled); Borrowing Profit: Base interest rate plus spread; Guarantee: Unsecured, unguaranteed.