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.

July 29, 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 XIX-A” and“Term Loan XIX-B”) and enter into interest rate swaps to lock-in the interest rates on
the loans.
1. New Loan and Interest Rate Swap Rationale
The new loans will be used to repay part of an existing loan of JPY 6.37 billion. The
remainder of the loan will be repaid from Ichigo Office’s bond issuance announced on
July 19, 2019. Details of the loan to be repaid are in Section 3 below.
The terms of the new loans are 7.7 years and 6.2 years, respectively, longer than theloan being repaid, further strengthening Ichigo Office’s financial position. Ichigo Office
is fixing the interest rates on the two loans via swaps in order to hedge against any
future rise in interest rates.
2. Loan and Interest Rate Swap Details
Term Loan XIX-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC, Mizuho Bank, Shinsei Bank, Aozora Bank,Resona Bank, ORIX Bank
JPY 4.955 billion
Repayment of existing loan
(SMBC Syndicate Loan II (Term Loan 3))
July 31, 2019
March 25, 2027 (7.7 years)
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.68% (p.a.)1
25th of each month following the Loan Date (thefirst payment date will be August 26, 2019 and thelast payment date will be the same as the Principal
Repayment Date)
No1

1

The swap will fix the interest rate for Term Loan XIX-A at 0.822%. However, theinterest rate for the payment on the first payment date (from July 31, 2019 to August26, 2019) will be 0.73028%.

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
July 29, 20190.822%

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

Collateralized1

Kagawa Bank
JPY 413 million
Repayment of existing loan
(SMBC Syndicate Loan II (Term Loan 3))
July 31, 2019
September 25, 2025 (6.2 years)
Repayment will be made in full on the Principal
Repayment Date1M JPY TIBOR + 0.59% (p.a.)1
25th of each month following the Loan Date (thefirst payment date will be August 26, 2019 and thelast payment date will be the same as the PrincipalRepayment Date)
NoThe swap will fix the interest rate for Term Loan XIX-B at 0.69825%. However, theinterest rate for the payment on the first payment date (from July 31, 2019 to August26, 2019) will be 0.64028%.

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
July 29, 2019
0.69825%

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.

2

3. Existing Loan Being Repaid
SMBC Syndicate Loan II (Term Loan 3)
LenderOutstanding Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Collateralized

SMBC, Mizuho Bank, Aozora Bank, Shinsei Bank,Resona Bank, Kagawa Bank, ORIX BankJPY 6.37 billion
Repayment of existing loan
August 1, 2014
July 31, 2019
JPY 4 million of the principal will be repaid on eachPartial Principal Repayment Date; the remainder will
be repaid in full on the Principal Repayment Date.
3M JPY TIBOR + 0.80% (p.a.)No

4. Earnings Outlook
The impact of the new loans and interest rate swaps on Ichigo Office’s October 2019 andApril 2020 fiscal period earnings has already been reflected in the forecasts presented inIchigo Office’s June 14, 2019 release “April 2019 Fiscal Period Earnings.”
5. OtherRisks related to the loans have no material impact on the “Investment Risks” described in
the latest Financial Report submitted today.

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)

21,247

14,873-6,403Long-term bank loans84,077

89,445+5,368

Total bank loans

105,324

104,289-1,035

4,400

4,400

–

109,724

108,689-1,035

Bonds
Total bank loans and bonds
1The amount reflects a JPY 32 million principal repayment scheduled for July 31, 2019.

3

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

9,639

■ Bank Loans (fixed rate)
9,629

9,633

(JPY million)■ Bonds

9,623

8,814
8,154
7,263

1,000

7,266

6,346
4,600

7,859
6,370

6,554

2,900

2,380

2,000
892

955

Oct
2019

Apr2020

900

Oct
2020

Apr
2021

Oct2021

Apr2022

Oct2022

Apr2023

Oct
2023

1,200

1,000

Oct
2027

Apr
2028

1,200600

Apr2024

Oct2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr2027

Oct2028

Apr2029

Oct2029

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

9,639

■ Bank Loans (fixed rate)
9,629

9,633

■ New Loans■ Bonds(JPY million)

9,623

8,814

8,154
1,000

7,266

6,346
4,955

4,600

7,859

2,900

2,793
413

6,554

2,000
2,380
892

955

Oct2019

Apr2020900

Oct2020

Apr
2021

Oct2021

Apr2022

Oct
2022

Apr
2023

Oct
2023

Apr
2024

1,200

1,000

Oct
2027

Apr
2028

1,200600

Oct
2024

4

Apr
2025

Oct2025

Apr
2026

Oct
2026

Apr
2027

Oct2028

Apr
2029

Oct2029