March 14, 2023
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 February 16, 2023, 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 onFebruary 16, 2023 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 February 16, 2023
with the lenders described below.

Term(Note 1)

Lenders

Borrowingamounts

Interest Rates

Expected

Principal

Date ofRepayment

Borrowing

Date

Repayment
MethodSecurity

A syndicate ofBaselenders with
Sumitomo MitsuiLong-term

Bankingborrowings

Corporation andMizuho Bank, Ltd.
as arrangers

interest

6,790
millionyen

FloatingrateFebruary

April 28,

(JPY 3M20, 2023

2028TIBOR)＋0.60 %(Note 2)

1

Lump sum
repayment on
principal
repayment
date

UnsecuredandUnguaranteedA syndicate ofBaselenders withSumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.

interest

3,000
millionyen

as arrangers

Floatingrate(JPY 3M

February28, 2029

TIBOR)＋0.70 %

(Note 2)

(Note 1) Borrowings with repayment periods exceeding 1 year are classified as “long-term”.
(Note 2) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, SBI Shinsei Bank, Limited, Aozora Bank, Ltd., Resona Bank, Limited., and THE BANK OF FUKUOKA, LTD.

(2)

Details of interest rate swap agreements
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
6,790 million yen
Interest rate (Note)
Fixed interest rate payable: 0.51100%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date March 16, 2023
Termination date
April 28, 2028
Interest payment
The first interest payment date will be March 31, 2023, and subsequent
dates
interest payment dates will be every 3 months at the end of the month.
(Note) Given the establishment of the Interest Rate Swaps, the interest rate for the relevant borrowing
will be effectively fixed at 1.11100 %.
Counterparty
Notional principal
Interest rate (Note)

Sumitomo Mitsui Trust Bank, Limited
3,000 million yen
Fixed interest rate payable: 0.57790%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date March 16, 2023
Termination dateFebruary 28, 2029
Interest payment
The first interest payment date will be March 31, 2023, and subsequent
dates
interest payment dates will be every 3 months at the end of the month.
(Note) Given the establishment of the Interest Rate Swaps, the interest rate for the relevant borrowing
will be effectively fixed at 1.27790 %.
3.

Future outlook
The impact of the establishment of the Interest Rate Swaps on the operating results will be announced infinancial report (kessan tanshin) for SAR’s 14th Fiscal Period (August 1, 2022 to January 31, 2023), which isscheduled to be released on March 16, 2023

4.

Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks related to the refinancing, there are no changes to Part 1. Fund Information,
I. Overview of the Fund, 3. Investment Risks” stated in the securities report (Japanese only) submitted onOctober 28, 2022.

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/
This is an English translation of the announcement in Japanese dated March 14, 2023.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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