v3.26.1
Borrowings and Lease Liabilities
 12 Months Ended
Mar. 31, 2026
Disclosure of detailed information about borrowings [abstract]  
Borrowings and Lease Liabilities Borrowings and Lease Liabilities
(1)
Components of Borrowings and Lease Liabilities

Components of borrowings and lease liabilities are as follows:

 

 

 

(In millions of yen)

 

 

 

March 31, 2025

 

 

March 31, 2026

 

Borrowings

 

 

 

 

 

 

Payment:

 

 

 

 

 

 

Loan payables (1)

 

 

213,050

 

 

 

280,825

 

Commercial papers (2)

 

 

84,000

 

 

 

73,000

 

Subtotal

 

 

297,050

 

 

 

353,825

 

Financial service:

 

 

 

 

 

 

Loan payables (1)

 

 

102,528

 

 

 

211,131

 

Subtotal

 

 

102,528

 

 

 

211,131

 

Total

 

 

399,578

 

 

 

564,956

 

 

 

 

 

 

 

Lease liabilities

 

 

 

 

 

 

Payment

 

 

11,121

 

 

 

9,096

 

Financial service

 

 

976

 

 

 

453

 

Total

 

 

12,097

 

 

 

9,549

 

 

(1)
The weighted average interest rates of the outstanding loan payables as of March 31, 2025 and 2026 were 0.55% and 0.80%, respectively.
(2)
The weighted average interest rates of the outstanding commercial papers as of March 31, 2025 and 2026 were 0.59% and 0.95%, respectively.

Significant financial covenants on the loan payables of PayPay Card Corporation

PayPay Card Corporation is subject to the following financial covenants with respect to a portion of its loan payables from financial institutions and was in compliance with such covenants for the years ended March 31, 2025 and 2026. All financial covenants are determined based on PayPay Card Corporation stand-alone financial information.

(i)
Net assets as of each fiscal year-end should be equal to or greater than 75% of the net assets as of the end of the previous fiscal year or March 31, 2021, whichever is higher.
(ii)
Should not incur operating losses or ordinary losses for two consecutive fiscal years.
(iii)
Required to remain a subsidiary of LY Corporation.
(iv)
Must maintain a minimum issuer rating of BBB- by a rating agency, and in absence of such rating, LY Corporation must maintain a minimum issuer rating of BBB+.
(2)
Changes in Liabilities Arising from Financing Activities

The table below details changes in the Group’s liabilities arising from financing activities, including both cash flows and non-cash transactions. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified as cash flows from financing activities in the Group’s Consolidated Statements of Cash Flows.

 

For the year ended March 31, 2024

 

 

 

 

 

(In millions of yen)

 

 

 

 

 

 

Non-cash transactions

 

 

 

 

Carrying amount
as of April 1,
2023

 

Cash flows

 

Addition (1)

 

Decrease

 

Carrying amount
as of March 31,
2024

Loan payables

 

361,540

 

129,678

 

—

 

—

 

491,218

Commercial papers

 

133,000

 

(21,000)

 

—

 

—

 

112,000

Lease liabilities

 

8,698

 

(2,409)

 

1,837

 

(392)

 

7,734

Total

 

503,238

 

106,269

 

1,837

 

(392)

 

610,952

 

For the year ended March 31, 2025

 

 

 

 

 

(In millions of yen)

 

 

 

 

 

 

Non-cash transactions

 

 

 

 

Carrying amount
as of April 1,
2024

 

Cash flows

 

Addition (1)

 

Decrease

 

Carrying amount
as of March 31,
2025

Loan payables

 

491,218

 

(176,298)

 

658

 

—

 

315,578

Commercial papers

 

112,000

 

(28,000)

 

—

 

—

 

84,000

Lease liabilities

 

7,734

 

(2,820)

 

7,204

 

(21)

 

12,097

Total

 

610,952

 

(207,118)

 

7,862

 

(21)

 

411,675

 

For the year ended March 31, 2026

 

 

 

 

 

(In millions of yen)

 

 

 

 

 

 

Non-cash transactions

 

 

 

 

Carrying amount
as of April 1,
2025

 

Cash flows

 

Addition

 

Decrease

 

Carrying amount
as of March 31,
2026

Loan payables

 

315,578

 

176,378

 

—

 

—

 

491,956

Commercial papers

 

84,000

 

(11,000)

 

—

 

—

 

73,000

Lease liabilities

 

12,097

 

(2,744)

 

307

 

(111)

 

9,549

Total

 

411,675

 

162,634

 

307

 

(111)

 

574,505

(1) Addition of lease liabilities and loan payables mainly resulted from new contracts.