July 23, 2017
For Immediate Release
Advance Residence Investment CorporationSecurities Code：3269
1-105 Kanda-Jinbocho, Chiyoda-ku, Tokyo
Takeshi Takano, Executive Director
Asset Management Company:
AD Investment Management Co., Ltd.
Takeshi Takano, President
Inquiries:
Hiroshi Kawakami, Managing Director,
CFO
TEL. +81-3-3518-0480

Notice Concerning Issuance of Investment Corporation Bond
Based on Green Financing
Advance Residence Investment Corporation (ADR) announced today its decision to issue investment
corporation bond based on the general resolution on ADR bond issuance adopted at the Board ofDirectors’ Meeting held on July 26, 2018, as follows.

1.

Terms of the Investment Corporation Bond
(1)

Name of the Investment Corporation BondADR Unsecured Bond #32(with Pari Passu clause among specified investment corporation bonds, private placement toqualified institutional investors)(2)

Total Amount of Bond
3,000 million yen(3)Form of the Investment Corporation Bond Certificates
Under the Act of Book-Entry Transfer of Company Bonds, Shares, etc., there will be no
certificate for the bond.

(4)

Issue Price
100 yen per par value of 100 yen(5)Redemption Price
100 yen per par value of 100 yen(6)

Coupon Rate

0.3485%(7)

Denomination
100 million yen(8)Offering Method1Privately placed to qualified institutional investors.
(9)

Offering Period
July 23, 2019(10)

Issue Date
July 25, 2019(11)

Collateral / Guarantee
No collateral or guarantee is on the bond and no assets are reserved as security for the bond.

(12)

Redemption Method and Redemption Date
The entire principal shall be redeemed on July 25, 2029.
The bonds may be repurchased at any time upon notifying the investors by document prior to therepurchase.

(13) Coupon Payment Dates
Coupon will be paid on last day of January and July, and on the redemption date. (the firstcoupon payment date will be on January 31, 2020)(14) Financial CovenantsContains a negative pledge.
(15) Acquired Ratings
No rating acquired.
(16) Fiscal, Issuing and Paying Agent
Sumitomo Mitsui Trust Bank, Limited(17) Underwriters
Daiwa Securities Co., Ltd

2.

Purpose of the Issuance
ADR believes that the issuing of green bonds will further promote ESG considerations in its asset
management and enhance its financing base.

3.
(1)Amount, Use and Scheduled Expenditure Date of Proceeds
Amount of Estimated Net Proceeds
2,977 million yen(2)Specific Usage and Scheduled Expenditure Date of Proceeds
The proceeds will be used to partially repay (Note 1) a loan coming due on July 25, 2019.
The loan was originally used in the acquisition of RESIDIA TOWER Meguro-Fudomae. As ofMarch 4, 2019, RESIDIA Tower Meguro Fudomae is awarded with 4 stars under DBJ Green
Building Certification.
(Note 1) For details, please refer to the “Notice Concerning Debt Financing and Repayment of Loan” and “NoticeConcerning Issuance of Investment Corporation Bond (Green Bond)” dated July17, 2019.

4．The Investment Corporation Bond Issuance Scheme

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The investment corporation bond will be issued under a new green financing method realized incollaboration with Sumitomo Mitsui Trust Bank, Limited (SMTB), and will be the first case among JREITs to use the scheme. In the scheme, SMTB trust account will acquire the entire issue using thefunds raised by Asset Backed Loan (ABL) where the backing asset will be the principal and interest of
the investment corporation bond which is proceed will be used to repay a borrowing that was used toacquire RESIDIA TOWER Meguro-Fudomae which is awarded with an environmental rating, as asource of funds. The ABL has been awarded a “Green 1” rating, the highest rating, in the JCR Green
Loan Evaluation (Note 2) by the Japan Credit Rating Agency, Ltd., an institution which assesses greenfinancing.
(Note 2) For details, please refer to the following website.: https://www.jcr.co.jp/en/greenfinance/
JCR（Green Finance
Assessment）
Issuance ofPrivatePlacement
BondRDTMeguroFudpmae

PrivatePlacement
BondSMTBDaiwa Securities
Co., LtdADR

Repaymentof Loan

Green certification

Loan（Trust Account）

ABL lender

Purchase
Payment

Proceed fromthe Issue

Principal and Interests

Principal and Interests

5.

SMTB

Principal and Interests（Fiscal Agent）

Other
There are no significant changes in the “Investment Risk” stated in the Securities Report filed on
April 25, 2019 regarding the risk concerning redemption of investment corporation bonds.

Reference Material: Debt Financing Balance (As of July 25, 2019)(in million yen)

Before Refinancing
Short-term Loans (Note4)

After Refinancing(Note3)Increase (Decrease)
1,000(9,000)(8,000)8,000-Long-term Loans (Note4)
Total Loans
Corporate Investment Bonds

1,000
195,318
196,318
29,0002,000
186,318
188,318
37,000Total interest-bearing debt

225,318

225,318(Note3) The balance assumes that the following actions will be made.
* Refinancing of the existing loan 1,000 million yen on July 25, 2019 which was announced in the press release “NoticeConcerning Debt Financing and Repayment of Loan” on July 17, 2019.
* Issuing another investment corporation bonds 5,000 million yen on July 25, 2019.
(Note4) Short-term loans are loans with original maturity periods of one year or less and long-term loans are loans with original
maturity periods of over one year.

3About Advance Residence Investment Corporation
Advance Residence Investment Corporation is the largest residential J-REIT, investing in over 260 rental apartments located mostly in central
Tokyo and in other major cities throughout Japan (AUM over 400 billion yen). ADR can be expected have a stable dividend in the long-term andcan be considered as a defensive J-REIT, on back of the stable income from residential assets and with the largest dividend reserve among JREITs.
ADR’s website: https://www.adr-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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