Recruit Seeks 400 B. Yen in Credit Line
Tokyo, April 11 (Jiji Press)--Recruit Holdings Co. <6098> has asked three major Japanese banks for a line of credit totaling more than 400 billion yen, sources familiar with the matter said Friday.
The Japanese company aims to prepare for the possibility that the spread of the novel coronavirus will cause a sustained drop in profitability.
The three lenders are MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank. They are expected to accept the request, the sources said.
Recruit relies on advertising business in Japan, including related to its restaurant and hotel booking sites. But the outbreak of the virus has prompted people to refrain from going outside, making the company's outlook highly uncertain.
The company had some 400 billion yen in cash and deposits at the end of December. It aims to boost the amount of funds available anytime by securing the credit line, the sources said.
[Copyright The Jiji Press, Ltd.]