Translation of Japanese Original
July 26, 2022
To All Concerned Parties
REIT Issuer:
Kenedix Residential Investment Corporation
Representative: Tetsu Kawashima, Executive Director
(Securities Code Number: 3278)
Asset Management Company
Kenedix Real Estate Fund Management, Inc.
Representative: Masahiko Tajima, President & CEO
Contact: Shin Yamamoto, Head of Strategic Planning,
Residential REIT Department
TEL:+81-3-5157-6011
Notice Concerning Debt Financing and Execution of Interest Rate Swap Agreement
Kenedix Residential Next Investment Corporation (the "Investment Corporation") announced today the decision regarding debt financing (total of ¥ 4.5 billion), execution of interest rate swap agreement, and also informs you of borrowing Series 68-D in "1. Details of Debt Financing" below as Social Loan in accordance with the Social Finance Framework defined by the Investment Corporation. Details are as follows.
1. Details of Debt Financing
Application | Principal | Collateral | |||||||||||||||||||||
Amount | Interest Rate | /Contract | Drawdown | ||||||||||||||||||||
Series | Lender | repayment | /Repayment | ||||||||||||||||||||
(million) | (Note 1) (Note 2) | Date | Date | ||||||||||||||||||||
Date (Note 2) | Method | ||||||||||||||||||||||
(Scheduled) | |||||||||||||||||||||||
Sumitomo Mitsui | |||||||||||||||||||||||
68-A① | Banking | ¥1,200 | Base rate(Note 4) | ||||||||||||||||||||
Corporation(Note 3) | (JPY TIBOR | July 26, | June 30, | ||||||||||||||||||||
for 1 month) | 2022 | 2023 | |||||||||||||||||||||
68-A② | Mizuho Bank, Ltd. | ¥300 | + 0.25000% | Unsecured, | |||||||||||||||||||
(Note 3) | unguaranteed | ||||||||||||||||||||||
To be | January 31, | / | |||||||||||||||||||||
68-B | MUFG Bank, Ltd. | ¥900 | determined(Note 5) | July 29, | Repayment | ||||||||||||||||||
2024 | |||||||||||||||||||||||
(Fixed rate) | 2022 | of principal | |||||||||||||||||||||
Sompo Japan | 0.38000%(Note 6) | August 31, | in full on | ||||||||||||||||||||
68-C | ¥1,000 | July 27, | maturity | ||||||||||||||||||||
Insurance Inc. | (Fixed rate) | 2025 | date | ||||||||||||||||||||
2022 | |||||||||||||||||||||||
Base rate(Note 4) | |||||||||||||||||||||||
68-D | Shinsei Bank, | ¥1,100 | (JPY TIBOR | July 31, | |||||||||||||||||||
Limited | for 3 month) | 2027 | |||||||||||||||||||||
+ 0.30000% |
(Note1) For series 68-A, the first interest payment is due at the end of August 2022 and on the last day of every month thereafter with final due on the principal repayment day. For series 68-B,68-C and series 68-D, the first interest payment is due at the end of October 2022 and on the last day of every three months thereafter with final due on the principal repayment day.
(Note2) If the interest payment date or the principal repayment date is a non-business day, the date shall be the next business day and if such next business day falls under the next month, the date shall be the preceding business day.
(Note3) Please refer to the press release "Notice Concerning Execution of Uncommitted Revolving Credit Facility Agreement" announced on March 22, 2022
(Note4) The Japanese Yen TIBOR of the JBATA is available on the JBATA website (http://www.jbatibor.or.jp/english/).
(Note5) Any undecided matters shall be determined on July 27, 2022 and will be announced after the decision is made.
(Note6) The interest rate applicable period is from July 29, 2022 to August 31, 2025.
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2. Reason for Debt Financing
The proceeds of this debt financing are to be used for the repayment of the borrowing series 1-D (¥4.5billion) (note) with the principal repayment date of July 29,2022.
(Note) For detail, please refer to the press release "Notice Concerning Debt Financing and Execution of Interest Rate Swap Agreement" announced by former Japan Senior Living Investment Corporation on July 29, 2015.
3. Interest Rate Swap Agreements
-
Reason for Executing the Interest Rate Swap Agreements
For a hedge against possible increases in future interest rate for Series 68-D with floating interest rate. - Details of the Interest Rate Swap Agreements
Series 68-D | |||
Counterparty | To be determined(Note) | ||
Notional Amount | ¥ 1,100 million | ||
Fixed interest | To be determined(Note) | ||
Interest | Rate for payment | ||
Rate | Floating interest | Base rate (JPY TIBOR for 3 month) | |
Rate for receipt | |||
Commencement Date | July 29, 2022 | ||
Termination Date | July 31, 2027 | ||
The interest payment is due at the end of October 2022, and on the last day of every three months | |||
Payment Date | thereafter with termination date. (If each payment day is a non-business day, then the payment will | ||
be due on the next business day and if the next business day is in the next month, then the previous | |||
business day will be applied.) |
(Note) Any undecided matters shall be determined on July 27, 2022 and will be announced after the decision is made.
4. Outline of the Social Finance Framework and Social Loan
-
Reason for Introducing Social Loan
The basic philosophy of the Investment Corporation is to obtain stable return and pursue sustainable growth through investments in various assets, what we call "spaces where people live and stay." The Investment Corporation connecting the capital market and the healthcare industry aims to maximize unitholder value by investing in healthcare-related facilities considered to be social infrastructures, one of the main investment targets as well as by bringing operational stability.
The Investment Corporation decided to procure funds through Social Loan in accordance with its social finance framework. The objective is to contribute to the development of the domestic social financial market by further enhancing initiatives for sustainability through this funding and collaboration with financial institutions who are proactively engaging into ESG investment and financing.
The Investment Corporation received "Social 1(F)," the highest rating in "JCR Social Finance Framework Assessment," from Japan Credit Rating Agency, Ltd. (JCR) with regard to the eligibility of social finance framework(Note) (hereafter be referred to as the "Framework") in November, 2019.
(Note) Regarding the detail, please refer to the press release "Notice Concerning Submission of Revised Shelf Registration Statement for the Issuance of Social Bond" announced on November 26, 2019.
- Total Amount to be Procured, Use of Funds and Scheduled Outlay Period
(i). Total amount to be procured (approximate net balance) 1,100 million yen
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(ii). Specific use of funds and scheduled outlay period
The funds procured through Social Loan is scheduled to be used to repay the borrowing (Series 1-D) on July 29, 2022, which was borrowed for the purpose of appropriation to the acquisition of an asset eligible for social finance (Note).
( Note )Assets eligible for social finance refer to assets fulfilling the following eligibility criteria.
Senior living facilities | | Private senior homes |
| Serviced senior housing | |
| Apartments for the elderly | |
| Group homes for elderly with cognitive impairment | |
| Small multi-function facilities | |
| Daycare facilities, etc. | |
Medical facilities | | Hospitals |
| Clinics | |
| Medical malls | |
| Nursing and health facilities, etc. |
5. Status of the Interest-bearing Liabilities after the Borrowings (as of July 29, 2022)
(Unit: millions of yen)
Classification | Balance Before | Balance After | Difference | ||||||||
the Borrowings | the Borrowings | ||||||||||
Short-term borrowings(Note 1) | 2,900 | 4,400 | 1,500 | ||||||||
Current portion of long-term borrowings(Note 2) | 16,450 | 11,950 | -4,500 | ||||||||
Long-term borrowings(Note 3) | 132,570 | 135,570 | 3,000 | ||||||||
Total borrowings | 151,920 | 151,920 | - | ||||||||
Investment corporation bonds | 7,700 | 7,700 | - | ||||||||
Total interest-bearing liabilities | 159,620 | 159,620 | - |
(Note1) The "Short-term borrowings" shall mean the borrowings with a period of less than or equal to one year from the borrowing date to the repayment date. However, if the first anniversary of the date of borrowings fall under a non-business day, the repayment date shall be the next business day and even if, as a result, the borrowing period exceeds one year, the borrowings shall be categorized as short-term borrowings.
(Note2) The "Current portion of long-term borrowings" shall mean the long term borrowings due within one year.
(Note3) The "Long-term borrowings" shall mean the borrowings with a period of more than one year from the borrowing date to the repayment date.
6. Others
In relation to the risks associated with the borrowings, there have been no significant changes to the "Investment Risks" stated in the securities report (Yuka shoken hokokusyo) submitted on April 26, 2022.
* Website URL of the Investment Corporation: https://www.kdr-reit.com/en/
[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.
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Kenedix Residential Next Investment Corporation published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 06:38:01 UTC.