October 15, 2020
FOR IMMEDIATE RELEASE
Activia Properties Inc.
21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo
Kazushi Sato
Executive Director(Code: 3279)
Asset Management Company
TLC REIT Management Inc.
Hiroyuki Tohmata
President & CEOInquiries
Kazuyuki Murayama
General Manager of Strategy Department
Activia Management Division(Tel: +81-3-6455-3377)

Notice Concerning Issuance of Investment Corporation Bonds (Green Bonds)
Activia Properties Inc. (“API”) announces that it decided today to issue investment corporation bonds(green bonds).

1. Summary of the investment corporation bonds (green bonds)(1) Name(2) Total issue amount(3) Form of bond certificate(4) Issue price(5) Redemption price(6) Interest rate(7) Denomination price(8) Offering method(9) Offering date(10) Payment date(11) Collateral(12) Redemption method and date(13) Interest payment date(14) Financial covenant(15) Credit rating(16) Depository(17) Fiscal agent, issuing agent andpaying agent

The 12th unsecured investment corporation bonds (green bonds)(with pari passu conditions among specified investment corporationbonds) (“the Investment Corporation Bonds”)¥4.5 billion
Subject to the provisions of the Act on Book-Entry Transfer ofCorporate Bonds, Shares, etc., the investment bond certificates will
not be issued for the Investment Corporation Bonds.
¥100 per ¥100 of each bond¥100 per ¥100 of each bond
0.510% per annum¥100 million
Public Offering
October 15, 2020 (Thursday)
October 21, 2020 (Wednesday)
Neither collateral nor guarantee is provided for the Investment
Corporation Bonds, and no asset has been particularly secured for theInvestment Corporation Bonds.
The total amount of the Investment Corporation Bonds will beredeemed on October 21, 2030.
Redemption by purchase of the Investment Corporation Bonds by API
will be available any time on and after the following day of the payment
date, unless otherwise determined by the depository.
April 21 and October 21 every year
Negative pledge among unsecured bonds
AA (Japan Credit Rating Agency, Ltd.)
Japan Securities Depository Center, Inc.
Sumitomo Mitsui Trust Bank, Limited1

(18) Underwriter

SMBC Nikko Securities Inc. and Mizuho Securities Co., Ltd.

2. Reasons for the issuance
API has decided to issue the Investment Corporation Bonds in order to extend and balance the debt
maturity and diversify the financing methods. Also, through the issuance of the Investment Co rporation
Bonds as green bonds in accordance with the Green Bond Framework for which a second-party opinion
obtained from Sustainalytics, an ESG rating agency, API aims to further promote its sustainability
initiatives and invite new investors to its investment corporation bonds by stimulating their demand who
have interest in ESG investment.

3. Amount of funds to be raised, use of proceeds and scheduled timing of expenditure(1) Amount of funds to be raised (estimated amount of net proceeds)¥4,477 million(2) Specific use of proceeds and scheduled timing of expenditure
All of the funds raised will be used on October 29, 2020 as part of the funds for a partial early repaymentof the short-term borrowings (¥5,998 million) which will become due and payable on November 30, 2020
(the “Existing Short-term Borrowings”). For further details, please refer to the “Notice Concerning Partial
Early Repayment of Funds” announced as of today.
4. Investors who declared intention to invest in the Investment Corporation Bonds
Listed below in alphabetical order are investors to date who declared their intention of investment in theInvestment Corporation Bonds and agreed to disclose their names.
- Credit Guarantee Corporation of Osaka- GUNMAMIRAI Shinkumi Bank
- Mutual Aid Foundation for Japan Postal Group- SHIZUOKA YAIZU SHINKIN BANK- TETSUDOKOSAIKAI FOUNDATION- The Dai-ichi Life Insurance Company, Limited2

5. Status of borrowings payable, etc. after the issuance of the Investment Corporation Bonds(1) Interest-bearing debt after the issuance of the Investment Corporation Bonds(In millions of yen)
Beforethe issuance(As of October 15,2020)
Short-term borrowings

After
the issuance(As of October 29,2020) (Note 1)

Change10,9986, 518(4,480)

Long-term borrowings to be repaid
within one year

26,25026,2500Long-term borrowings

190,100

190,100

0

227,348

222,868(4,480)Investment corporation bonds
to be redeemed within one year000

Investment corporation bonds

17,00021,5004,500

244,348244,368

20(Note 2)(Note 2)

Total amount of borrowings

Total amount of borrowing andinvestment corporation bonds(Note 1) The figures are based on assumption that the early repayment of the Existing Short-term Borrowings (¥4,480 million) will bemade on October 29, 2020.
(Note 2) Short-term borrowings refer to borrowings with a maturity period of one year or less, and long-term borrowings refer toborrowings with a maturity period of more than one year.

(2) Basic financing information after the issuance of the Investment Corporation Bonds
Beforethe issuance(As of October 15, 2020)
Long-term borrowing ratio(Note 2) (Note 5)Long-term borrowing ratio(excluding the long-term borrowings
to be repaid and investment
corporation bonds to be redeemedwithin one year)

After
the issuance(As of October 29,2020) (Note 1)

Change(point)

95.5%

97.3%

1.8

84.8%

86.6%

1.8

88.1%

89.9%

1.8

(Note 3) (Note 5)

Fixed interest ratio(Note 4) (Note 5)(Note 1) The figures are based on assumption that the early repayment of the Existing Short-term Borrowings (¥4,480 million) will bemade on October 29, 2020.
(Note 2) Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the long-term borrowings to berepaid within one year) and investment corporation bonds (including the investment corporation bonds to be redeemed withinone year) to the total of outstanding interest-bearing debt.
(Note 3) Long-term borrowing ratio (excluding the long-term borrowings to be repaid and investment corporation bonds to beredeemed within one year) is the ratio of the outstanding long-term borrowings (excluding the long-term borrowings to be
repaid within one year) and investment corporation bonds (excluding the investment corporation bonds to be redeemed within
one year) to the total of outstanding interest-bearing debt.
(Note 4) Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the total ofoutstanding interest-bearing debt. The total of outstanding interest-bearing debt with fixed interest rates includes debts whose
interest rates were converted into fixed interest rates by interest rate swap agreements.
(Note 5) Figures are rounded to the first decimal place.

36. Other
Regarding the risks related to the redemption of the Investment Corporation Bonds, there are no significant
changes in the “Investment Risk” section of the securities report submitted on August 24, 2020.

*Website of API: https://www.activia-reit.co.jp/en/

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