April 30, 2021
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(s)”) for the long-term borrowings described in the“Notice Concerning Debt Financing (Refinancing)” dated April 16, 2021, as described below.
Please refer to the press release mentioned above for details of the borrowings for which the Establishment ofInterest Rate Swaps was performed.
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
April 16, 2021, as described in “2. Details of the established swaps” below.

2.

Details of the established swaps(1) Borrowings for which the interest rate swap agreements were concludedTerm(Note 1)Long-term
borrowings(Note 1)

Lenders
A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 2)
A syndicate oflenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
as arrangers(Note 3)

Borrowingamount5,960
million yen

Interestrates

Date ofborrowing

Borrowing
methodApril 20,2021

Borrowing basedon the individualterm loan
agreement dated
April 16, 2021
based on thebasic agreement
dated July 29,2020 withSumitomo Mitsui
BankingCorporation asagent.

Baseinterestrate(JPY 3MTIBOR）+0.60%

3,000
million yen

Baseinterest
rate(JPY 3MTIBOR）+0.80%

Principal
Repayment
Date

Repayment
methodSecurity

Lump sum
repaymentonprincipal
repayment
date

Unsecure
dand
Unguaranteed

April 30,
2026

April 28,2028

Long-term borrowings refer to borrowings where the period up to the repayment date is one year or more. The1

same applies below.
(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., The Bank ofYokohama, Ltd., Shinsei Bank, Limited, Aozora Bank, Ltd., and Sumitomo Mitsui Trust Bank, Limited.

(Note 3)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, The Kiyo Bank, Ltd., and Fukoku Mutual Life Insurance Company.

(2)

Details of interest rate swap agreements
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
5,960 million yen
Interest rate (Note)
Fixed interest rate payable: 0.1025%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date
April 30, 2021
Termination dateApril 30, 2026
Interest payment dates
The first interest payment date shall be July 30, 2021, and subsequently
every 3 months at the end of the month.
(Note) The interest rate for the long-term borrowing will be effectively fixed at 0.7025% with theconclusion of the Establishment of Interest Rate Swap.
Counterparty
Notional principal
Interest rate (Note)

Sumitomo Mitsui Trust Bank, Limited
3,000 million yen
Fixed interest rate payable: 0.1455%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date
April 30, 2021
Termination date
April 28, 2028
Interest payment dates
The first interest payment date shall be July 30, 2021, and subsequently
every 3 months at the end of the month.
(Note) The interest rate for the long-term borrowing will be effectively fixed at 0.9455% with theconclusion of the Establishment of Interest Rate Swap.

3.

Future outlook
The impact of the Establishment of the Interest Rate Swaps on SAR’s operating results is insignificant,and the impact on the forecast of operating results for the fiscal period ending July 31, 2021 (February 2,2021 to July 31, 2021) and the fiscal period ending January 31, 2022 (August 1, 2021 to January 31, 2022)
which were announced by SAR in the “(REIT) Financial Report for Fiscal Period Ended January 31, 2021”
dated March 16, 2021 is minimal, and there are no changes to the forecast.

4.

Other matters required for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to Establishment of the Interest Rate Swaps, there are nochanges to the contents described in “Part 1. Fund Information, I. Overview of the Fund, 3. Investment
Risks” of the Securities Report (Japanese only) submitted on April 28, 2021.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated April 30, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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