July 10, 2020
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities:
Nippon Accommodations Fund Inc.
Takashi Ikeda, Executive Director(TSE Code: 3226)
Investment Trust Management Company:
Mitsui Fudosan Accommodations FundManagement Co., Ltd.
Tateyuki Ikura, President and CEO
Inquiries: Tetsuji Kawakami, CFO and Director(TEL: +81-3-3246-3677)

Notification Concerning Issuance of Investment Corporation Bonds (Green Bonds)
and Early Repayment of Borrowing Funds
Nippon Accommodations Fund Inc. (“NAF”) hereby provides notice of its decision today to issue investmentcorporation bonds (the “Green Bonds”) based on a comprehensive resolution to issue investment corporation bonds
adopted at the Board of Directors’ meeting held on July 10, 2019, as follows.
In addition, this is a notification that NAF decided to make early repayment of some of its existing loans as shownbelow.

1. Summary of investment corporation bonds(1) Name(2) Total amount to be issued(3) Form of certificates(4) Payment amount(5) Redemption amount(6) Interest rate(7) Unit price(8) Method of offering(9) Subscription date(10) Payment date(11) Security and collateral(12) Method and date ofredemption(13) Interest payment dates(14) Financial covenant(15) Rating(16) Fiscal agent, issuing
agent, and paying agent(17) Underwriting securities
companies

5-year bonds
10-year bonds
Nippon Accommodations Fund
Nippon Accommodations Fund
3rd Unsecured Investment
4th Unsecured Investment Corporation
Corporation Bonds (with special pari
Bonds (with special pari passu
passu conditions among specified
conditions among specified investment
investment corporation bonds) (greencorporation bonds) (green bonds)
bonds)
2.0 billion yen
2.0 billion yen
The Act on Book-Entry Transfer of Corporate Bonds and Shares applies to theGreen Bonds, so investment corporation bond certificates will not be issued for
the Green Bonds.
100 yen per 100 yen par value of investment corporation bonds
100 yen per 100 yen par value of investment corporation bonds
0.260% per annum
0.520% per annum
100 million yen
Public offering
July 10, 2020 (Friday)
July 16, 2020 (Thursday)
No secured mortgage or guarantee is applicable to the Green Bonds, and noassets are specifically reserved as collateral for the Green Bonds.
The entire amount will be redeemed
The entire amount will be redeemedon July 16, 2025.
on July 16, 2030.
The Green Bonds may be repurchased and cancelled at any time after the dateof payment unless specified to the contrary by the relevant transfer agent.
Last day of each of January and July each year
Negative pledge applies
AA－ (Rating and Investment Information, Inc.)
Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Banking Corporation

SMBC Nikko Securities Inc.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Mizuho Securities Co., Ltd.

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2. Reason for issuanceNAF decided to issue the Green Bonds with the aim of strengthening the funding base by expanding the groupof investors interested in ESG investment and financing, along with promoting initiatives for sustainability evenfurther.
The Green Bonds will be issued as green bonds based on the green finance framework that NAF has
formulated as announced in “Notification Concerning Submission of Revised Shelf Registration Statement forIssuance of Green Bonds” dated June 18, 2020.
For eligibility of the green finance framework, NAF has been assigned “Green 1 (F),” the highest evaluationgrade in the JCR Green Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR).
(Note)For the green finance framework, please refer to “Notification Concerning Submission of Revised Shelf Registration
Statement for Issuance of Green Bonds” dated June 18, 2020.

3. Amount, use and expected dates of expenditure of capital to be procured(1) Amount of capital to be procured (estimated amount net of costs and expenses)
3,965 million yen(2) Specific use of funds and expected dates of expenditure
NAF plans to apply all of the proceeds from the Green Bonds to fund the repayment of the loans (includingthe loans from subsequent refinancing) that were required for acquisition of Park Cube Meguro Tower, aneligible green asset under the green finance framework, in the form of full/partial early repayment of existingloans as shown below.

4. Details of loans for early repayment
LenderLoan AmountInterest Rate

The Norinchukin Bank

2.0 billion yen

0.11909%

MUFG Bank, Ltd.

4.0 billion yen

0.72750%

Loan Type &Repayment Method
Unsecured &unguaranteed,
Bullet repayment
Unsecured &unguaranteed,
Bullet repayment

Date of Loan

Date ofMaturity

June 15,2020

September 15,2020

March 15,2013

September 15,
2020

5. Outline of early repayment
Lender

Early Repayment Amount

Balance After Early Repayment

The Norinchukin BankMUFG Bank, Ltd.

2.0 billion yen
2.0 billion yen－
2.0 billion yen

Date of Early
Repayment
July 31, 2020
July 31, 2020

6. Investors that have declared investment in the Green Bonds
Of the investors that have declared investment in the Green Bonds to date, the names of those investors thathave consented to disclosure of their names are listed (in order of the Japanese syllabary).
THE AWAJI SHINKIN BANKKIRYU SHINKIN BANKYOKOHAMA MINATOMIRAI21 CORPORATION
Daitokyo Shinyokumiai Credit Cooperative
THE ECHIZEN SHINKIN BANKHANDA SHINKIN BANK
Credit Guarantee Corporation of Osaka
FUJINOMIYA SHINKIN BANKNorth Pacific Bank,LTD.
Sumitomo Mitsui Trust Asset Management Co., Ltd.
The Kita Osaka Shinkin Bank
Mitsubishi UFJ Trust and Banking Corporation2

7. Status of interest-bearing debt after these events (as at July 31, 2020)(Unit: billion yen)
Before these Events

After these Events

ChangeShort-term debt

5.03.0(2.0)

Long-term debt

151.5

149.5(2.0)

Total debt

156.5

152.5

(4.0)

Investment corporation bonds

－

4.0

4.0

Total interest-bearing debt

156.5

156.5

－

Interest-bearing debt ratio

53.6%

53.6%

－Long-term interest-bearing debt ratio

96.8%

98.1%

1.3

(*1) The following formula was used to calculate the interest-bearing debt ratio.
(interest-bearing debt ratio) = (interest-bearing debt) ÷ (interest-bearing debt + unitholders’ capital) X 100
The unitholders’ capital as of today (135,603,623 thousand yen) was used.
(*2) (long-term interest-bearing debt ratio) = (long -term debt + investment corporation bonds) ÷ (interest-bearing debt) X 100(*3) All calculations of ratios were rounded to one decimal place.

8. Others
Regarding the risks associated with issuance and redemption of the Green Bonds, etc., there is no importantchange to the “Investment risks” description in the latest securities report submitted on May 29, 2020.

9. Outlook
Though break-funding costs will be incurred upon early repayment, the impact of this early repayment on NAF’s
financial results for the period ending August 31, 2020 (29th Period: March 1, 2020 to August 31, 2020) and theperiod ending February 28, 2021 (30th Period: September 1, 2020 to February 28, 2021) will be minimal, andthere will be no change to the financial results forecast for the periods.

•NAF website: https://www.naf-r.jp/english/

Please note that this English translation of the Japanese original document is provided solely for information
purposes. In the event of any discrepancy between the Japanese original and this English translation, the Japaneseoriginal shall prevail.

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