Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

May 29, 2023
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Eriko Ishii, Executive Director
www.ichigo-hotel.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel
Tel: +81-3-3502-4892

Early Redemption of Subordinated Bonds
Ichigo Hotel decided today on the early redemption of the Ichigo Hotel First Callable
Unsecured Investment Corporation Bond (subordinated and limited to qualifiedinstitutional investors) and Ichigo Hotel Second Callable Unsecured Investment
Corporation Bond (subordinated and limited to qualified institutional investors)(collectively “Subordinated Bonds”) which were allotted to its sponsor, Ichigo.
1. Redemption Date
June 12, 2023 (expected)
2. Bond Details
Ichigo Hotel First Callable Unsecured Investment Corporation Bond (subordinated andlimited to qualified institutional investors)
Total Issue Amount
Early Redemption AmountInterest Rate
Issue Date
Redemption Date

JPY 500 million
JPY 500 million (Total Amount JPY 500 million)
2.0% (fixed rate)
November 25, 2020
April 30, 2026

Ichigo Hotel Second Callable Unsecured Investment Corporation Bond (subordinatedand limited to qualified institutional investors)
Total Issue Amount
Early Redemption AmountInterest Rate
Issue Date
Redemption Date

JPY 370 million
JPY 370 million (Total Amount JPY 370 million)
2.0% (fixed rate)
September 30, 2021
March 31, 2027

1

3. Reason for Redemption
Amid market uncertainty caused by the Covid pandemic, Ichigo Hotel issued
Subordinated Bonds to its sponsor, Ichigo, to strengthen its financial base and todemonstrate Ichigo’s strong commitment to Ichigo Hotel.
With the Covid pandemic no longer a global health emergency, the hotel market has been
recovering due to a significant increase in domestic leisure demand as a result of theJapanese government’s domestic travel subsidy program and with inbound demand
returning as a result of the lifting of overseas travel restrictions. In view of Ichigo Hotel’s
increasing financial stability, Ichigo Hotel has decided on an early redemption in full ofthe Subordinated Bonds using cash-on-hand.
4. Earnings Impact
The impact of the redemption of the Subordinated Bonds is minimal and therefore, there
is no change to the Ichigo Hotel’s July 2023 and January 2024 fiscal period earnings
forecasts presented in the March 30, 2023 release “Correction: January 2023 Fiscal
Period Earnings.”
5. OtherRisks related to the redemption have no material impact on the “Investment Risks”
described in the latest Financial Report submitted on April 27, 2023.

2

Reference: Loan and Bond Composition after Redemption
Outstanding Loan and Bond Balance(JPY million)
BeforeRedemption
(A)

After
Redemption(B)

Change(B) - (A)

Short-term bank loans

13,75013,750–Long-term bank loans

11,72011,720–Total bank loans

25,47025,470–Subordinated bonds

870

–-870

26,34025,470-870

Total bank loans and bonds

Distribution of Loan and Bond Maturities per Fiscal Period
Before Redemption■ Long-term Loans (fixed rate) ■ Short-term Loans■ Bonds(JPY million)

13,300

8,800

7,170
4,950

4,5000
July
2023

January
2024

2,220

3,000

July
2024

January
2025

2,500
500
370

2,000
July
2025

January
2026

July
2026

January
2027

July
2027

After Redemption■ Long-term Loans (fixed rate) ■ Short-term Loans(JPY million)

13,300

8,800

7,170
4,950

4,5000
July
2023

January
2024

2,220

3,000

July
2024

January2025

02,0000
July
2025

30
January
2026

July
2026

0
January2027

0July2027