September 4, 2018
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive officer(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative: Atsushi Kato
President and CEO
Contact: Toru Sugihara
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Establishment of Interest Rate Swaps
Star Asia Investment Corporation (“SAR”) announces today the establishment of interest rate swaps (the“Establishment of Interest Rate Swaps”) concerning long-term borrowings described in “Notice Concerning DebtFinancing” dated August 21, 2018, as described below. Moreover, please refer to the press release mentioned
above for the details of borrowings which the Establishment of Interest Rate Swaps was made for.
1. Reason for establishment
SAR intends to fix interest rate payments and hedge the risk of interest rate fluctuation pertaining to theborrowings under individual term loan agreements concluded today as described in “2. Details of the establishedswaps” below.
2. Details of the established swaps<Borrowings which interest rate swap agreements were made for>Term(Note 1)

Borrowing
Lenderamount(million yen)Interest

Date of

Borrowing

Maturity

Repaymentrateborrowing

methoddatemethodSecurity

Borrowing based
A syndicate
Long-term(1)of lenders

4,000

Base

on the individualinterest

term loan

with

rate

agreement dated

Sumitomo+0.45%

September 4,
Lump sum

the basic

repayment

agreement dated

on maturity

Base

April 15, 2016

dateinterest

between

September
20, 2023

SeptemberBanking

6, 2018

CorporationLong-term(2)Bank, Ltd. as

4,840

2022

2018 based on

Mitsuiand Mizuho

March 22,

arrangers

rate

Sumitomo Mitsui(Note 2)+0.60%

Banking

Unsecuredandunguaranteed

Corporation asan agent.

(Note 1)
(Note 2)Long-term refers to borrowings due after one year. The same applies hereinafter.
The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, Aozora Bank, Ltd., Shinsei Bank, Limited, Resona Bank, Limited., The Bank of Fukuoka, Ltd.,
Mizuho Trust & Banking Co., Ltd. and The Nishi-Nippon City Bank, Ltd.

1

(1) Interest rate swap agreement in connection with Long-term Borrowing (1)Counterparty
Nomura Securities Co., Ltd.
Notional principal
4,000 million yen
Interest rate (Note)
Fixed interest rate payable: 0.1595 %Floating interest rate receivable: JBA 1 month yen TIBOR
Commencement date
September 6, 2018
Termination date
March 22, 2022
Interest payment dates
The first interest payment will be September 20, 2018, and subsequent interest
payments will be the 20th of every month.
(Note) The interest rate for Long-term Borrowing (1) will be effectively fixed at 0.6095% with the conclusion of
the Establishment of Interest Rate Swaps. The Floating interest rate receivable for initial calculation
period (September 6, 2018 – September 20, 2018) shall calculate based on linear interpolation between
reference rates corresponding to 1week and 1 month, rounded up to the five decimal places.
(2) Interest rate swap agreement in connection with Long-term Borrowing (2)Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
4,840 million yen
Interest rate (Note)
Fixed interest rate payable: 0.212 %Floating interest rate receivable: JBA 1 month yen TIBOR
Commencement date
September 6, 2018
Termination date
September 20, 2023
Interest payment dates
The first interest payment will be September 20, 2018, and subsequent interest
payments will be the 20th of every month.
(Note) The interest rate for Long-term Borrowing (2) will be effectively fixed at 0.812% with the conclusion of
the Establishment of Interest Rate Swaps. The Floating interest rate receivable for initial calculation
period (September 6, 2018 – September 20, 2018) shall calculate based on linear interpolation between
reference rates corresponding to 1week and 1 month, rounded up to the five decimal places.

3. Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks pertaining to the Establishment of Interest Rate Swaps, there are no changes to“Part II. Reference Information / II. Information Supplementary to Reference Documents / 3. Investment Risks”
stated in the Securities Registration Statement submitted on August 21, 2018.

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/2