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.

April 24, 2019
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

New Loans and Interest Rate Swaps
Ichigo Office decided today to borrow funds via new loans (“Term Loan XVIII-A,”“Term Loan XVIII-B,” and “Term Loan XVIII-C”) and enter into interest rate swaps tolock-in the interest rates on the three loans.
1. Reason for New Loans and Interest Rate Swaps
The new loans will be used to repay existing loans (JPY 3 billion). Details of the loans
to be repaid are in Section 3 below.
The terms of the new loans are 7.4 years, longer than the existing loans to be repaid,
further strengthening Ichigo Office’s finances. Ichigo Office is fixing the interest rates
on the three loans via swaps in order to hedge against any future rise in interest rates.
2. Loans and Interest Rate Swaps Details
Term Loan XVIII-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1SMBC
JPY 1 billion
Repayment of existing loan (Term Loan VII-A)
April 26, 2019
September 25, 2026 (7.4 year loan term)
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.65% (p.a.)1
25th of each month following the Loan Date (thefirst payment date will be May 25, 2019 and the lastpayment date will be the same as the Principal
Repayment Date)
NoThe swap will fix the interest rate for Term Loan XVIII-A at 0.867%.

1

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
April 24, 2019
0.867%

Term Loan XVIII-B
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1Resona Bank
JPY 1 billion
Repayment of existing loan (Syndicate Loan IV)
April 26, 2019
September 25, 2026 (7.4 year loan term)
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.65% (p.a.)1
25th of each month following the Loan Date (thefirst payment date will be May 25, 2019 and the last
payment date will be the same as the Principal
Repayment Date)
NoThe swap will fix the interest rate for Term Loan XVIII-B at 0.867%.

Swap Details
Counterparty
Contract DateFixed Interest Rate

Mizuho Bank
April 24, 2019
0.867%

Term Loan XVIII-C
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1Bank of Fukuoka
JPY 1 billion
Repayment of existing loan (Syndicate Loan IV)
April 26, 2019
September 25, 2026 (7.4 year loan term)
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.65% (p.a.)1
25th of each month following the Loan Date (thefirst payment date will be May 25, 2019 and the last
payment date will be the same as the Principal
Repayment Date)
NoThe swap will fix the interest rate for Term Loan XVIII-C at 0.867%.

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
April 24, 2019
0.867%

2Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on thefollowing business day. If the following business day falls into the following month,
payment shall be made on the previous business day.
3. Existing Loans Being Repaid
Term Loan VII-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Collateralized

SMBC
JPY 1 billion
Asset acquisition and related costs
November 2, 2016
April 30, 2019
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.39% (p.a.)
NoSyndicate Loan IV
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Collateralized

Resona Bank, Bank of Fukuoka
JPY 2 billion
Repayment of existing loans
April 30, 2014
April 30, 2019
Repayment will be made in full on the Principal
Repayment Date
3M JPY TIBOR + 0.90% (p.a.)No

4. Earnings Outlook
The impact of the new loans and interest rate swaps on Ichigo Office’s April 2019 andOctober 2019 fiscal period earnings has already been reflected in the forecasts presented inIchigo Office’s December 14, 2018 release “October 2018 Fiscal Period Earnings.”
5. OtherRisks related to the loans have no material impact on the “Investment Risks” described in
the latest Financial Report submitted January 28, 2019.

3

Reference: Loan and Bond Composition after New Loans
Outstanding Loan and Bond Balance(JPY million)
BeforeNew Loans
(A)

After
New Loans(B)1

Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

19,207

16,198-3,009Long-term bank loans

86,15389,126+2,972

Total bank loans

105,361

105,324

-36

3,200

3,200–

108,561

108,524-36

Other interest-bearing liabilities–––

Total interest-bearing liabilities

108,561

108,524-36

Bonds
Total bank loans and bonds

1The amount excludes a JPY 36 million partial principal repayment scheduled on April
26, 2019.

4

Distribution of Loan and Bond Maturities
Before New Loans■ Bank Loans (floating rate)
10,233
9,574■ Bank Loans (fixed rate)
9,639

9,629

9,633

■ Bonds(JPY million)

9,623

8,814

8,154

7,263

1,000
6,346
4,600

7,859
3,000

6,370

4,266
6,554

2,900
2,380
2,000

Apr
2019

892955Oct2019

Apr
2020

900

Oct
2020

Apr
2021

Oct2021

Apr2022

Oct2022

Apr2023

Oct
2023

Apr
2024

1,200

1,000

Oct
2027

Apr
2028

600

Oct2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr2027

After New Loans■ Bank Loans (floating rate)
10,233
9,574■ Bank Loans (fixed rate)
9,639

9,629

9,633

■ New Loans■ Bonds(JPY million)

9,623

8,814

8,154

7,263

1,000

7,266

6,346
3,000
4,600

7,859
6,370

6,554

2,900
2,380

4,266

2,000

Apr
2019

892

955

Oct
2019

Apr
2020

900

Oct
2020

Apr
2021

Oct
2021

Apr2022

Oct
2022

Apr
2023

Oct
2023

5

Apr
2024

1,200

1,000

Oct
2027

Apr
2028

600

Oct
2024

Apr
2025

Oct2025

Apr2026

Oct
2026

Apr2027