JAPAN REAL ESTATE INVESTMENT CORPORATION NEWS RELEASE
June 15, 2022
For Immediate Release
Investment Corporation
Japan Real Estate Investment Corporation
Yutaka Yanagisawa, Executive Director
(TSE code: 8952)
Asset Management Company
Japan Real Estate Asset Management Co., Ltd.
Shojiro Kojima, President & CEO
Contact: Masaru Motooka
Executive Officer & General Manager
Planning Department
Phone: +81‐3‐3211‐7951
Announcement of Debt Financing (Sustainability‐Linked Loan)
Japan Real Estate Investment Corporation hereby announces its decision today to procure funds as follows:
1. Reason for the borrowing
Repayment of the existing long‐term loan of JPY 3 billion executed on June 17, 2014.
2. Overview of the borrowing
(1) | Borrowing date | June 17, 2022 | |||||
(2) | Lender, Amount of loan, Principal repayment date | ||||||
Lender | Amount of loan | Principal repayment date | |||||
The Norinchukin Bank | JPY 3,000 million | June 17, 2032 | |||||
(3) | |||||||
Interest rate: | 0.61625% (Fixed) (Note1) | ||||||
(4) | Method of borrowing: | Loan agreement dated June 15, 2022 | |||||
Unsecured/unguaranteed loan | |||||||
(5) | Interest payment date: | The principal repayment date and the 17th day of every June and | |||||
December in the period until the principal repayment date (Note2) | |||||||
(6) | Method of principal repayment: | Lump‐sum repayment on the principal repayment date |
(Note1) This borrowing will be procured through a sustainability‐linked loan ("SLL"), whose loan terms are aligned with JRE's achievement status of the following sustainability performance targets ("SPTs") set beforehand.
・SPT 1: Reduce CO2 emissions by 80% by fiscal 2030 (Base year: Fiscal 2019 / Absolute basis)
・SPT 2: Own five ZEBs (Net zero Energy Building) by fiscal 2030
The applicable interest rate will be lower by 0.01% on the condition that either one of the above targets set as SPTs are achieved for the performance levels set for Dec. 2022, Dec. 2025 and Dec. 2028,
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respectively, for the period until the performance level is next confirmed (for the time of final confirmation, | |||||||||||
the repayment date). Please refer to "Loans and Bonds" under Financial Summary of JRE's website | |||||||||||
https://www.j‐re.co.jp/en_cms/finance/debt.htmlfor the interest rate applicable after the performance | |||||||||||
level is confirmed. | |||||||||||
Moreover, in concluding the agreement for the SLL, JRE has obtained a second‐party opinion from Japan | |||||||||||
Credit Rating Agency, Ltd. (JCR) with regard to conformity with the Sustainability Linked Loan Principles and | |||||||||||
the rationality of the established SPTs. For more details, please refer to the press release by JCR. | |||||||||||
https://www.jcr.co.jp/greenfinance/ | (in Japanese) | ||||||||||
・Joint release by the Norinchukin Bank and JRE | |||||||||||
https://www.j‐re.co.jp/file/en‐news‐02959604fda9d449efcddbdf467d9c55b0b39eaa.pdf | |||||||||||
(Note2) When an interest payment date is not a business day, the interest shall be paid on the following business | |||||||||||
day or the immediately preceding business day if the following business day is in the following month. | |||||||||||
| Overview of Existing Loan Subject to Repayment | |||||||||||
(1) | Borrowing date: | June 17, 2014 | |||||||||
(2) Lender, Amount of loan, Principal repayment date | |||||||||||
Lender | Amount of loan | Principal repayment date | |||||||||
The Norinchukin Bank | JPY 3,000 million | June 17, 2022 | |||||||||
(3) | |||||||||||
Disclosed date: | June 11, 2014 | ||||||||||
3. Balance of interest‐bearing debt after the debt financing | (Units: millions of JPY) | ||||||||||
Before | After | Increase/Decrease | |||||||||
Short‐term loans payable | 26,200 | 26,200 | ±0 | ||||||||
Long‐term loans payable | 21,000 | 21,000 | ±0 | ||||||||
(Variable interest rate) | |||||||||||
Long‐term loans payable | 334,700 | 334,700 | ±0 | ||||||||
(Fixed interest rate) | |||||||||||
Total loans | 381,900 | 381,900 | ±0 | ||||||||
Investment corporation bonds | 42,993 | 42,993 | ±0 | ||||||||
Total | 42,993 | 42,993 | ±0 | ||||||||
investment corporation bonds | |||||||||||
Total interest‐bearing debt | 424,893 | 424,893 | ±0 | ||||||||
4. Others
Regarding risks pertaining to this loan repayment, there is no material change to the descriptions of "Investment risks" in the latest securities report submitted on December 24, 2021.
This is the English translation of the announcement in Japanese dated June 15, 2022.
No assurance or warranties are given for the completeness or accuracy of this English translation.
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JREI - Japan Real Estate Investment Corporation published this content on 15 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 June 2022 07:02:08 UTC.
