NTT UD REIT INVESTMENT CORPORATION For Immediate Release | March 8, 2024 |
REIT Issuer | |
NTT UD REIT Investment Corporation | |
1-5-1 Otemachi, Chiyoda Ward, Tokyo | |
Executive Director | Takeshi Oodera |
(Securities Code 8956) | |
Asset Management Company | |
NTT Urban Development Asset Management Corporation | |
President & CEO | Yutaka Torigoe |
[Contact] |
Director & CFO, Finance | Takeshi Iwata |
Department | |
TEL: +81-3-6262-9400 | |
Notice Concerning Debt Finance (Including Green Loan)
NTT UD REIT Investment Corporation ("NUD") announces the decision made at its board of directors' meeting held today to borrow funds (hereinafter, the "Debt Finance") as described below. A portion of the Debt Finance will be Green Loans that will be executed based on the Green Finance Framework established by NUD.
1. Reason for the Debt Finance
The 18,900 million yen of the funds to be procured will be allocated to cash on hand, which decreased due to the repayment of long-term loans of 750 million yen (Note 1), which were due on February 29, 2024, and to the acquisition funds (Note 2) for Granpark, which is scheduled to be acquired on March 14, 2024, and Garden Itabashi Hikawacho, which is scheduled to be acquired on March 22, 2024.
(Note 1) Reference: "Notice Concerning Debt Finance" dated August 24, 2018
(Note 2) Reference: "Notice Concerning Property Acquisition" dated February 29, 2024
2. Details of the Debt Finance
The Debt Finance involves the borrowing of ten term loans (2,000 million yen in a short-term loan/16,900 million yen in long-term loans/a total borrowing amount of 18,900 million yen). The details are provided in the following tables.
Contract | Amount of | Borrowing/ | |||||
Number | Debt | Borrowing | Repayment | Maturity | |||
Lender | Interest Rate, etc | Repayment | |||||
(Term | Finance | date | Date | (years) | |||
Method | |||||||
loan) | (million yen) | ||||||
134 | Aozora Bank, Ltd. | 750 | February 28, | 6.0 | Fixed rate: | ||
2030 | not yet fixed (Note 3) | ||||||
Mizuho Bank, Ltd. | February 28, | Floating rate: | |||||
135 | 2,000 | 1.0 | Base interest rate | ||||
(Green Loan) (Note 1) | 2025 | ||||||
+ 0.12％ (Note 4) | |||||||
136 | Sumitomo Mitsui Trust Bank, Limited | 2,500 | August 31, | 2.5 | Fixed rate: | ||
(Green Loan) (Note 1) | 2026 | not yet fixed (Note 3) | |||||
137 | Sumitomo Mitsui Trust Bank, Limited | 2,200 | March 14, | August 31, | 3.5 | Fixed rate: | |
(Green Loan) (Note 1) | 2027 | not yet fixed (Note 3) | Unsecured/non- | ||||
2024 | |||||||
138 | MUFG Bank, Ltd. | 2,000 | August 31, | 5.5 | Fixed rate: | guaranteed | |
(Green Loan) (Note 1) | 2029 | not yet fixed (Note 3) | and Lump-sum | ||||
139 | MUFG Bank, Ltd. | 1,500 | August 30, | 6.5 | Fixed rate: | repayment upon | |
(Green Loan) (Note 1) | 2030 | not yet fixed (Note 3) | maturity | ||||
140 | Mizuho Bank, Ltd. | 2,500 | February 28, | 7.0 | Fixed rate: | ||
(Green Loan) (Note 1) | 2031 | not yet fixed (Note 3) | |||||
141 | Sumitomo Mitsui Banking Corporation | 2,500 | February 27, | 8.0 | Fixed rate: | ||
(Green Loan) (Note 1) | 2032 | not yet fixed (Note 3) | |||||
142 | NTT TC Leasing Co., Ltd. | 2,500 | February 29, | 4.0 | Fixed rate: | ||
(Note 2) | March 22, | 2028 | not yet fixed (Note 3) | ||||
143 | Mizuho Bank, Ltd. | 450 | 2024 | February 28, | 7.0 | Fixed rate: | |
2031 | not yet fixed (Note 3) | ||||||
(Note 1) These Green Loans will be used to fund the acquisition of Eligible Green Assets of Granpark. NUD has acquired Green 1(F) rating, the highest assessment, in "JCR Green Finance Framework Evaluation" by Japan Credit Rating Agency, Ltd. (JCR), which is a third-party evaluation organization, regarding the eligibility of its Green Finance Framework.
Reference: "Notice Concerning Acquisition of Third-Party Evaluation of Green Finance Framework" dated April 1, 2021
(Note 2) NTT TC Leasing Co., Ltd. falls under the category of an interested party, etc. of NTT Urban Development Asset Management Corporation ("UDAM"), the asset management company for NUD, as defined in the Act on Investment Trusts and Investment Corporations. As such, Debt Finance from NTT TC Leasing Co., Ltd. have been resolved by the Compliance Committee, which includes outside experts, in accordance with the UDAM's "Policy on Transactions with Interest Parties."
(Note 3) The first interest payment date shall be May 31, 2024 and subsequent interest payment dates shall be the final day of February, May, August and November each year and on the principal repayment date (or the preceding business day if the said date is not a business day).
And there will be an announcement regarding the interest rate once such details have been determined (to be determined two business days prior to the borrowing date).
(Note 4) The first interest payment date shall be April 30, 2024 and subsequent interest payment dates shall be the final day of each month and on the principal repayment date (or the preceding business day if the said date is not a business day). The base interest rate applied to the calculation period of the interest to be paid on the interest payment date will be the 1-month
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Japanese yen TIBOR on a day two business days prior to such interest payment date (provided, however, it is the borrowing date for the first period). In the event that the interest calculation period is more than 1-month or less than 1-month, the base rate corresponding to the interest calculation period shall be calculated using the method stipulated in the loan agreement.
Details of the JBA Japanese Yen TIBOR can be checked on the JBA TIBOR Administration website (https://www.jbatibor.or.jp/english/).
3. Outstanding Interest-Bearing Liabilities after the Debt Finance
(million yen) | |||||
Prior to | After | Variation | |||
the Debt Finance | the Debt Finance | ||||
Short-term loans | 5,700 | 7,700 | + 2,000 | ||
Long-term loans | 115,150 | 132,050 | + 16,900 | ||
Total loans | 120,850 | 139,750 | + 18,900 | ||
Corporate bonds | 9,200 | 9,200 | - | ||
Total interest-bearing liabilities | 130,050 | 148,950 | + 18,900 | ||
4. Other Matters Required for Investors to Appropriately Understand and Evaluate the Above Information
There will be no change to the content of "Investment Risk / (2) Risk Related to Product Design and Related Parties / (iv) Risk Related to Loans and Investment Corporation Bonds" described in NUD's Securities Report filed on January 30, 2024, due to the Debt Finance.
- NUD's website is https://nud-reit.co.jp/en/
- Neither NUD nor UDAM makes any assurance or warranty with respect to the completeness or accuracy of this English translation. For more complete and accurate information, please refer to the original announcement in Japanese.
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NTT UD REIT Investment Corporation published this content on 08 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 06:07:03 UTC.
