Translation of Japanese Original
September 20, 2019
To All Concerned Parties
REIT Issuer:
Kenedix Office Investment Corporation
Jiro Takeda, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Masahiko Tajima, President & CEO
Inquiries:
Hiroaki Momoi
Head of Planning Division
Office REIT Department
TEL: +81-3-5157-6010

Notice Concerning Debt Financing (Series 168) and
Execution of Interest Rate Swap Agreement

Kenedix Office Investment Corporation (“the Investment Corporation”) has announced today, that the Investment
Corporation decided to undertake the debt financing (total of 2,700 million yen) and the execution of interest rate
swap agreements.
Please see below for the details.
1. Outline of Debt Financing
Series

168-ALenderAmountInterest Rate
(Note 1) (Note 2)

Aozora Bank, Ltd.

1,000
millionyen

Base rate(JPY TIBOR
for 3 months)+0.45000%MUFG Bank, Ltd.

900
millionyen

800
millionyen

Drawdown
Date

Principal
Repayment
Date (Note 1)

Collateral ・Repayment
MethodSeptember 30,
2026

Base rate(JPY TIBOR
for 3 months)+0.47500%

September 20,
2019

September 30,
2019
March 31,2027

168-B
The Norinchukin Bank

Contract
Date

Unsecured,unguaranteed
・Repaymentof principal
in full on
maturity date

To be determined(Note 3)(Fixed interest rate)

Note 1: The first interest payment is due at the end of December 2019, and on the last day of every 3 months thereafter with the principal
repayment day. If each interest payment day or the principal repayment day is a non-business day, then the interest payment or theprincipal repayment will be due on the next business day and if that next business day is in the next month, then previous business day
will be applied.
Note 2: The base rate that is applied during interest period for the interest due on each interest payment date for debt financing with floatinginterest rate shall be calculated based on Japanese Yen TIBOR for 3 months, which the JBA TIBOR Administration (“the JBATA”)
releases two business days before each interest payment date. The Japanese Yen TIBOR of the JBATA is available on the JBATA website(http://www.jbatibor.or.jp/english/rate/).
Note 3: The undecided matter will be announced upon determination.

2. Purpose of Debt Financing
Series 168 is to apply the fund towards the repayment of Series 89 (2,700 million yen) with the principal repayment
date of September 30, 2019. In addition, for the purpose of diversifying and expanding the financial institutions that
we deal with, we newly borrow from The Norinchukin Bank as a new lender.

13. Interest Rate Swap Agreement(1) Purpose
For a hedge against possible increases in future interest rate of the debt financing (Series 168) with floating interestrate.
(2) Details of Interest Rate Swap Agreement
168-A

SeriesCounterparty

168-B

To be determined and announced upon determinationNotional Amount
Fixed Interest Rate for
PaymentInterestRate
Floating Interest Ratefor Receipt
Commencement Date

1,000 million yen

900 million yen

Termination Date

September 30, 2026

To be determined and announced upon determination
Base rate (JPY TIBOR for 3 months)
September 30, 2019
March 31, 2027

The first payment is due at the end of December 2019, and on the last day of every 3months thereafter with the termination date. (If each payment day is a non-business day,

Payment Datethen the payment will be due on the next business day and if that next business day isin the next month, then previous business day will be applied.)

4. Status of Borrowings and Investment Corporation Bonds after the Debt Financing (as of September 30, 2019)(Millions of yen)

Short-Term Borrowings (Note 1)

Balance before
the Debt Financing
2,200

Balance after
the Debt Financing
2,200Long-Term Borrowings (Note 2)

174,850

174,8500177,050

177,050

0

8,000

8,000

0

185,050

185,0500Classification

Total Borrowings
Investment Corporation Bonds
Total Borrowings and Investment Corporation Bonds

Difference

Note 1: Short-term borrowings refer to debt financing with a period less than or equal to one year from the drawdown date to the principal
repayment date. However, the borrowings for which the period until the principal repayment date has surpassed one year because theprincipal repayment date after one year from the drawdown date is not a business day, and for which the principal repayment date has
been moved to a different business day, are included in short-term borrowings.
Note 2: Long-term borrowings refer to debt financing with a period more than one year from the drawdown date to the principal repayment date.

5. OtherFor risks concerning the repayment, etc. of the aforementioned debt financing, there are no significant changes to the“Investment Risks” as described in the Securities Report (submitted on July 30, 2019).

The Investment Corporation’s website: https://www.kdo-reit.com/en/
This notice is the English translation of the Japanese announcement on our website released on September 20, 2019. However, noassurance or warranties are given for the completeness or accuracy of this English translation.

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