US convenience store operator 7-Eleven has said it has entered an agreement to borrow up to US$400m from its Japanese affiliate, which can acquire funds at lower rates.

Under the agreement, 7-Eleven will issue notes to Seven-Eleven Japan, to be repaid in eight equal semi-annual instalments beginning in July 2006 and ending in January 2010.

7-Eleven plans to use the funds for general corporate purposes, reported Reuters.