August 31, 2022
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:
Akiko Kanno
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 swap
agreements (the “Establishment of Interest Rate Swap”) for the long-term borrowings described in the “NoticeConcerning Debt Financing (Refinancing)” dated August 26, 2022, as described below.
Please refer to the press release mentioned above for details of the borrowings for which the Establishment ofInterest Rate Swaps were executed.
1.

Reason for establishment
The interest rate swaps have been established in order to fix interest rate payments and hedge interest
rate fluctuation risks pertaining to the borrowings under an individual term loan agreement concluded on
August 29, 2022 as described under “2. Details of the established swaps” below.

2.

Details of the established swaps(1) Borrowings for which the interest rate swap agreements were concluded
Method of Borrowings: Borrowings under individual term loan agreements signed on August 29, 2022 withthe lenders described below.

Term(Note 1)

Lenders

Borrowingamounts

Interest Rates

Expected

Principal

Date of

Repayment

Borrowing

Date

August 31,

April 30,

2022

2026

Repayment
MethodSecurity

A syndicate ofBase

lenders with
Sumitomo MitsuiLong-term

Bankingborrowings

Corporation andMizuho Bank, Ltd.
as arrangers

interest3,100
millionyen

Floatingrate(JPY 3MTIBOR)＋0.45 %

(Note 2)

1Lump sum
repayment on
principal
repayment
date

UnsecuredandUnguaranteedA syndicate ofBaselenders withSumitomo MitsuiBankingCorporation andMizuho Bank, Ltd.

interest

2,500
millionyen

as arrangers

Floatingrate(JPY 3M

August 31,2027

TIBOR)＋0.60 %

(Note 2)

(Note 1) Borrowings with a repayment period of 1 year or less are classified as “short-term” and borrowings withrepayment periods exceeding 1 year are classified as “long-term”.

(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Shinsei Bank and Resona Bank, Limited.
(2)Details of interest rate swap agreements
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
3,100 million yen
Interest rate (Note)
Fixed interest rate payable: 0.24990%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date August 31, 2022
Termination date
April 30, 2026
Interest payment
The first interest payment date will be November 30, 2022, anddates
subsequent interest payment dates will be every 3 months at the end ofthe month.
(Note) Given the establishment of the Interest Rate Swaps, the interest rate for the relevant borrowing
will be effectively fixed at 0.69990 %.
Counterparty
Notional principal
Interest rate (Note)

Sumitomo Mitsui Trust Bank, Limited
2,500 million yen
Fixed interest rate payable: 0.29990%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date August 31, 2022
Termination dateAugust 31, 2027
Interest payment
The first interest payment date will be November 30, 2022, anddates
subsequent interest payment dates will be every 3 months at the end ofthe month.
(Note) Given the establishment of the Interest Rate Swaps, the interest rate for the relevant borrowing
will be effectively fixed at 0.89990 %.
3.

Future outlook
The impact of the establishment of the Interest Rate Swaps on the operating results is insignificant, andthere are no changes to the forecast of operating results for the fiscal period ending January 31, 2023
(August 1, 2022 to January 31, 2023) and the fiscal period ending July 31, 2023 (February 1, 2023 to July 31,2023) which was announced by SAR in the press release entitled “Notice Concerning Revision to Forecasts
for Operating Results for the 14th Fiscal Period Ending January 31, 2023 and Forecasts for Operating Resultsand Distribution for the 15th Fiscal Period Ending July 31, 2023” dated August 1, 2022. With respect to thesummary financial report (kessan tanshin) for SAR’s 13th Fiscal Period (February 1, 2022 to July 31, 2022), itis scheduled to be disclosed on September 13, 2022

4.

Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks related to the establishment of the Interest Rate Swaps, there are nochanges to the section “Part 2. Reference Information, 2. Supplementary Information on Reference2Documents, 3. Investment Risks” found in the securities report (Japanese only) submitted on August 1,2022.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated August 31, 2022.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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