August 17, 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 August 2, 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
August 17, 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)

Borrowingamount3,750
million yen

Interestrates

Date ofborrowing

Borrowing
methodAugust 19,
2021

Borrowing basedon the individualterm loan
agreement dated
August 17, 2021
based on thebasic agreement
dated July 29,2020 withSumitomo Mitsui
BankingCorporation asagent.

Baseinterestrate(JPY 3MTIBOR）+0.60%

3,250
million yen

Baseinterestrate(JPY 3MTIBOR）+0.80%

Principal
Repayment
Date

Repayment
methodSecurity

Lump sum
repaymentonprincipal
repayment
date

Unsecure
dand
Unguaranteed

August 19,
2026

August 21,
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., Sumitomo Mitsui
Trust Bank, Limited., Aozora Bank, Ltd., The Bank of Yokohama, Ltd., and The Minato Bank, Ltd.

(Note 3)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited., Aozora Bank, Ltd., and The Minato Bank, Ltd.

(2)

Details of interest rate swap agreements
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
3,750 million yen
Interest rate (Note)
Fixed interest rate payable: 0.07795%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement dateAugust 19, 2021
Termination dateAugust 19, 2026
Interest payment dates
The first interest payment date shall be September 30, 2021, andsubsequently every 3 months at the end of the month.
(Note) The interest rate for the long-term borrowing will be effectively fixed at 0.67795% with theconclusion of the Establishment of Interest Rate Swap.
Counterparty
Notional principal
Interest rate (Note)

Sumitomo Mitsui Trust Bank, Limited
3,250 million yen
Fixed interest rate payable: 0.08935%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement dateAugust 19, 2021
Termination dateAugust 21, 2028
Interest payment dates
The first interest payment date shall be September 30, 2021, andsubsequently every 3 months at the end of the month.
(Note) The interest rate for the long-term borrowing will be effectively fixed at 0.88935% 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 January 31, 2022 (August 1,2021 to January 31, 2022) and the fiscal period ending July 31, 2022 (February 1, 2022 to July 31, 2022)
which were announced by SAR in the “Notice Concerning Revision to Forecasts for Operating Results for the12th Fiscal Period Ending January 31, 2022 and Forecasts for Operating Results and Distribution for the13th Fiscal Period Ending July 31, 2022” dated August 2, 2021 is minimal, and there are no changes to theforecast. With respect to the summary financial report (kessan tanshin) for SAR’s 11th Fiscal Period(February 1, 2021 to July 31, 2021), it is scheduled to be disclosed on September 14, 2021

4.

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 (Japanese only) submitted on August 2, 2021.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated Augustl 17, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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