July 17, 2019
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 (Green Bond)
Advance Residence Investment Corporation (ADR) announced today its decision to issue an investment
corporation bond as follows, based on the general resolution on ADR bond issuance adopted at the Boardof Directors’ Meeting held on July 26, 2018.

1.

Terms of Investment Corporation Bonds(1)

Name of Investment Corporation BondADR Unsecured Bond #31, Green Bond
(with Pari Passu clause among specified investment corporation bonds)(2)

Total Amount of Bond Issuance
5,000 million yen(3)Form of 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

0.22%(7)Denomination
100 million yen(8)Offering Method
Public offering1

(9)Offering Period
July 17, 2019 (Wednesday)(10) Issue Date
July 24, 2019 (Wednesday)(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 24, 2024.
The bonds may be purchased and cancelled at any time on and after the date following the issue
date unless otherwise stipulated by the depository.

(13)

Coupon Payment DatesJanuary 24 and July 24 every year (first payment date is January 24 2020)(14)

Financial CovenantsContains a negative pledge.

(15)

Acquired Ratings
AA rating from JCR(16)

Fiscal, Issuing and Paying AgentMUFG Bank, Ltd.
(17)

Underwriters
Mizuho Securities Co., Ltd.
SMBC Nikko Securities Inc.
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 our financing base by broadening our investor universe, especially forinvestors interested in ESG investment. It is with this belief that ADR today decided to issue the firstgreen bond among residential J-RIETs. The Investment Corporation bonds will be issued as green
bonds in accordance with the green finance framework (Note1) formulated by the Investment
Corporation. Regarding the eligibility of the green finance framework, ADR has received a “Green 1(F)” rating, the highest rating, in the JCR Green Finance Framework Evaluation by the Japan Credit
Rating Agency, Ltd., an institution which assesses green financing.
(Note 1) For details, please refer to the “Notice Concerning Submission of Revised Shelf Registration Statement for Issuanceof Green Bonds” dated June 26, 2019.

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3.

Amount, Use and Scheduled Expenditure Date of Proceeds(1)

Amount of eEstimated Net Proceeds
4,975 million yen(2)Specific Usage and Scheduled Expenditure Date of Proceeds
The proceeds will be used to partially repay a loan coming due on July 25, 2019.The existing loan
was used to repay a loan originally used in the acquisition of RESIDIA TOWER MeguroFudomae. As of March 4, 2019, RESIDIA Tower Meguro Fudomae is awarded with 4 stars under
DBJ Green Building Certification, and meet the eligible criteria as Eligible Green Assets.
(Note 2) For details, please refer to the “Notice Concerning Debt Financing and Repayment of Loan” dated July17, 2019.

(3)

Investors Who Declared Intention to Invest in the Investment Corporation Bonds
Listed below in alphabetical order are investors to date who declared their intention of investmentin the Investment Corporation Bond and agreed to the disclosure of their names.
・IZAWA METAL CO., LTD.
・THE OITA BANK, LTD.
・Shigaken Shinyokumiai
・Sugamo Shinkin Bank・Daitokyo Shinyokumiai
・Hanno Shinkin Bank・Fujinomiya Shinkin Bank・Sumitomo Mitsui Trust Asset Management Co., Ltd.
・Mitsubishi UFJ Trust and Banking Corporation
・Ryoubi Shinyokumiai

4.

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, 2018)(in million yen)

Short-term Loans (Note5)Long-term Loans (Note5)
Total Loans
Corporate Investment Bonds
Total interest-bearing debt

Before Refinancing (Note3)
2,000
196,918
198,918
27,500226,418

After Refinancing (Note4)0196,918
196,918
29,000225,918

Increase (Decrease)(2,000)(2,000)1,500(500)(Note3)(Note4)As of July 17, 2019.
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 inth press release“Notice Concerning Debt Financing and Repayment of Loan” today.
* Issuing another investment corporation bonds 3,000 million yen on July 25, 2019.

(Note5)

Short-term loans are loans with repayment dates within one year from the drawdown date and long-term loans are loans
with repayment dates that are more than one year away.

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/

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[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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