September 9, 2021

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
Nippon Accommodations Fund Inc. (“NAF”) hereby provides notice of its decision today to issue investment
corporation bonds (the “Investment Corporation Bonds”) based on a comprehensive resolution to issue investment
corporation bonds adopted at the Board of Directors’ meeting held on July 9, 2021, as follows.

1. Summary of Investment Corporation Bonds(1) Name(2) Total amount to beissued(3) Form of certificates(4) Payment amount(5) Redemptionamount(6) Interest rate(7) Unit price(8) Method of offering(9) Subscription date(10) Payment date(11) Security andcollateral(12) Method and dateof redemption(13) Interest paymentdates(14) Financial covenant(15) Rating

8-year bonds
Nippon Accommodations
Fund 5th Unsecured
Investment Corporation
Bonds (with special paripassu conditions among
specified investment
corporation bonds) (greenbonds)

10-year bonds
Nippon Accommodations
Fund 6th Unsecured
Investment Corporation
Bonds (with special paripassu conditions among
specified investment
corporation bonds)

15-year bonds
Nippon Accommodations
Fund 7th Unsecured
Investment Corporation
Bonds (with special paripassu conditions among
specified investment
corporation bonds)

1.0 billion yen

2.0 billion yen

1.0 billion yen

The Act on Book-Entry Transfer of Corporate Bonds and Shares applies to theInvestment Corporation Bonds, so investment corporation bond certificates will not be
issued for the Investment Corporation Bonds.
100 yen per 100 yen par value of investment corporation bonds
100 yen per 100 yen par value of investment corporation bonds
0.320% per annum
0.390% per annum
0.680% per annum
100 million yen
Public offering
September 9, 2021 (Thursday)
September 30, 2021 (Thursday)
No secured mortgage or guarantee is applicable to the Investment Corporation Bonds,
and no assets are specifically reserved as collateral for the Investment CorporationBonds.
The entire amount will be
The entire amount will be
The entire amount will be
redeemed onredeemed onredeemed on
September 30, 2031.
September 30, 2036.
September 28, 2029.
The Investment Corporation Bonds may be repurchased and cancelled at any time after
the date of payment unless specified to the contrary by the relevant transfer agent.
Last day of each of March and September each year
Negative pledge applies
AA－ (Rating and Investment Information, Inc.)1

(16) Fiscal agent,issuing agent, andpaying agent(17) Underwriting
securities
companies

8-year bonds

10-year bonds

15-year bonds

The Norinchukin BankSumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation

SMBC Nikko Securities
Inc.

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

SMBC Nikko Securities Inc.
Nomura Securities Co., Ltd.
Daiwa Securities Co. Ltd.

2. Reason for IssuanceNAF decided to issue the Investment Corporation Bonds with the aim of diversifying the repayment dates ofinterest-bearing debt, extending the average remaining maturity and diversifying fund procurement methods
through the issuance.
In addition, as for the 5th Unsecured Investment Corporation Bonds (with special pari passu conditions among
specified investment corporation bonds) (green bonds), NAF decided to issue green bonds (the “Green Bonds”)
with the aim of strengthening the funding base by expanding the group of investors interested in ESG investment
and financing, along with promoting initiatives for sustainability even further.
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 for
Issuance of Green Bonds” dated June 18, 2020.
For eligibility of the green finance framework, NAF has been assigned “Green 1 (F),” the highest evaluation
grade in the JCR Green Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR).

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 use the procured funds as funds for the repayment of the loans due for repayment by March31, 2022. Moreover, NAF will apply all of the proceeds from the Green Bonds to fund the repayment of theloans (including the loans from subsequent refinancing) that were required for acquisition of Shibaura Island
Air Tower, an eligible green asset under the green finance framework. Specifically, it plans to apply suchproceeds to partially fund the repayment of 1 billion yen of short-term debt with The Bank of Fukuoka, Ltd.
as the lender due for repayment on September 30, 2021.

2

4. Status of Interest-Bearing Debt After the Issuance of Investment Corporation Bonds(Unit: billion yen)
Before theIssuance

After the Issuance(as of September 30, 2021)

ChangeShort-term debt

4.0

3.0

(1.0)

Long-term debt

161.5

161.5

－Total debt

165.5

164.5

(1.0)

Investment corporation bonds

4.0

8.0

4.0

Total interest-bearing debt

169.5

172.5

3.0

Interest-bearing debt ratio

53.8%

54.2%

0.4%

Long-term interest-bearing debt ratio

97.6%

98.3%

0.6%

(*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 (145,499,910 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.
(*4) Of the 4 billion yen of short-term debt due for repayment on September 30, 2021, the repayment of 1 billion yen has been reflectedon “After the Issuance” in the table above.

5. Others
Regarding risk associated with the redemption of the Investment Corporation Bonds, there is no importantchange to the “Investment risks” description in the latest securities report submitted on May 31, 2021.

•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.

3