AEON REIT Investment Corporation's property in Malaysia, AEON Taman Universiti Shopping Centre. (Photo: AEON REIT Investment Corporation)AEON REIT Investment Corporation's property in Malaysia, AEON Taman Universiti Shopping Centre. (Photo: AEON REIT Investment Corporation)

Tokyo-listed AEON REIT Investment Corporation announced on 13 October that it will be issuing JPY2 billion (USD19 million) worth of unsecured bonds in two separate tranches.

The tranches, which will be referred to as the second and third series respectively, consist of JPY1 billion each, and will be issued via a public offering.

Interest rates for the second and third series have been set at 0.47%, and 1.2% per annum respectively.

The second series bonds will mature on 20 October 2026, while the third series will mature on 20 October 2036.

The bonds’ first payment date has been set for 20 April 2017, and subsequently on 20 April, and 20 October every year thereafter.

Proceeds from the bonds’ issuance will be used towards repayment of outstanding borrowings, the retail REIT indicated in a statement.

“The investment corporation has decided to make a repayment of its outstanding borrowings by fund procured through issuance of bonds in order to diversify and extend the debt maturity date and diversify the financing methods”, it said.

Units of AEON REIT Investment Corporation last changed hands on the Tokyo Stock Exchange at JPY128,800.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.