AVI Global Trust plc has entered into a preliminary agreement to JPY 4.5 billion fixed rate unsecured debt, for a term of ten years. Subject to final documentation, the annual interest rate on the debt will be 1.44%. The debt will be denominated in JPY and is equivalent to approximately GBP 25 million at current exchange rates.

The Company currently has in issue the following fixed rate debt: GBP 30m 4.184% Series A Sterling Senior Unsecured Loan Notes, due 15 January 2036; EUR 30 million 3.249% Series B Euro Senior Unsecured Loan Notes, due 15 January 2036; EUR 20 million 2.93% Euro Senior Unsecured Loan Notes, due 1 November 2037; JPY 8 billion 1.38% JPY Senior Unsecured Loan Notes, due 6 July 2032. In addition, the Company has a JPY 12 billion multi-currency revolving credit facility, of which JPY 8 billion is currently drawn down. The Company is currently 5% geared on a net basis (105% invested).

Assuming that the debt issue proceeds as planned, the Company's weighted average interest on its fixed rate borrowings will be reduced to 2.5%, compared with 2.7% currently.