Japan to Amend Rules to Improve Disclosure of Loan Covenants (1)

Japan’s regulators are planning to amend disclosure rules to make it mandatory for companies to give debt details including the status of covenants on large bank loans, in an attempt to energize capital market investment.

A working group at the Financial Services Agency is planning to start collecting public comments on its proposed revisions as soon as this week, an FSA official said, declining to be identified due to the watchdog’s policy.

The changes will come at a time when credit investors are increasingly demanding that more stringent protections be built into Japanese corporate bond terms. Unizo Holdings Co.’s ...