Translation of Japanese Original
June 26, 2020
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 174) and
Execution of Interest Rate Swap Agreements

Kenedix Office Investment Corporation (“the Investment Corporation”) has announced today, that the Investment
Corporation decided to undertake the debt financing (total of 9,700 million yen) and the execution of an interest rate
swap agreements.
Please see below for the details.
1. Outline of Debt Financing
Series

174-A

174-B

174-C

LenderAmountSumitomo Mitsui
Banking Corporation

1,000
millionyen

MUFG Bank, Ltd.

1,000
millionyen

Mizuho Bank, Ltd.

1,000million
yen

Sumitomo Mitsui
Banking Corporation

2,000
millionyen

Mizuho Bank, Ltd.

2,000
millionyen

Mizuho Trust & Banking
Co., Ltd..

700million
yen

MUFG Bank, Ltd.

2,000
millionyen

Interest Rate
(Note 1) (Note 2)
Base rate(JPY TIBORfor 1 months)+0.30000%
Base rate(JPY TIBOR
for 1 months)+0.25000%
Base rate(JPY TIBOR
for 1 months)+0.25000%
Base rate(JPY TIBOR
for 3 months)+0.50000%
Base rate(JPY TIBOR
for 3 months)+0.50000%
Base rate(JPY TIBOR
for 3 month)+0.50000%

Contract
Date

Drawdown
Date

Principal
Repayment
Date (Note 1)

Collateral ・Repayment
MethodJune 30,2021

June 26,
2020

Unsecured,
unguaranteed・Repaymentof principal
in full on
maturity dateJune 30,
2020

June 30,2028

0.51000%（Fixed interest rate）

Note 1: The first interest payment of Series 174-A is due at the end of July 2020, and on the last day of every month thereafter with the principal
repayment day. The first interest payment of Series 174-B and 174-C are due at the end of September 2020, and on the last day of every 3months 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 the principal 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.

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Note 2: The base rates that are applied during interest period for the interest due on each interest payment date for Series174-A shall be calculated
based on Japanese Yen TIBOR for 1 month, which the JBA TIBOR Administration (“the JBATA”) releases two business days before eachinterest payment date and for Series174-B shall be calculated based on Japanese Yen TIBOR for 3 months, which the JBATA releases twobusiness 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/).

2. Purpose of Debt Financing
Series 174 is to apply the fund towards a part of acquisition funds and related costs for Shinbashi M-SQUARE Brightto be acquired on June 30, 2020.
Note: For details on the acquisition, please refer to the press release, “Notice Concerning Acquisition of Property (Shinbashi M-SQUARE Bright) andSale of Properties(KDX Nihonbashi Honcho Building, KDX Nihonbashi Edo-dori Building and KDX Shin-Nihonbashi Building)” dated June 26,
2020.

3. Interest Rate Swap Agreements(1)Purpose
For a hedge against possible increases in future interest rate of Series174-B.
(2)Details of Interest Rate Swap Agreements
Series

174-B

Counterparty

Nomura Securities Co.,Ltd.

Notional AmountInterestRate

2,000 million yen

Fixed Interest Rate for
Payment (Note)
Floating Interest Ratefor Receipt

2,000 million yen

700 million yen

0.14600％
Base rate (JPY TIBOR for 3 months)

Commencement Date

July 30, 2020

Termination Date

July 30, 2028

Payment Date

The first payment is due at the end of September 2020, and on the last day of every 3 months
thereafter with the termination date. (If each payment day is a non-business day, then thepayment 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: By entering into the interest rate swap agreements, the interest rates on Series 174-B is essentially fixed at 0.64600%.

4. Status of Borrowings and Investment Corporation Bonds after the Debt Financing (as of June 30, 2020)(Millions of yen)

Short-Term Borrowings (Note 1)

Balance before
the Debt Financing
9,500

Balance after
the Debt Financing
12,500Long-Term Borrowings (Note 2)

172,550

179,250+6,700

182,050191,750+9,700Classification

Total Borrowings
Investment Corporation Bonds
Total Borrowings and Investment Corporation Bonds

Difference+3,00010,00010,0000

192,050

201,050+9,700Note 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 hasbeen 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. Other
For 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 January 30, 2020).
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 June 26, 2020. However, noassurance or warranties are given for the completeness or accuracy of this English translation.

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