Tokyo-listed Nippon Prologis REIT has taken on a total of JPY13.4 billion (USD113 million) in long term borrowings that will come into effect from 20 December 2016.
The debt comes in two tranches of JPY4 billion and JPY9.4 billion each, both of which will need to be repaid by 20 December 2024, and 18 December 2026, respectively.
The loans, which have been obtained from a syndicate of lenders that include Sumitomo Mitsui Banking Corporation, and the Bank of Tokyo-Mitsubishi UFJ, are unsecured and are not guaranteed.
The loans feature a base interest rate that will follow the 3-month Tokyo Interbank Offered Rate (TIBOR) plus 0.28% for the first tranche, and plus 0.4% for the second tranche.
The first interest payment date is Feb. 28, 2017, and thereafter the interest payment date will be the last day of every February, May, August, and November until the repayment date, said the REIT.
The loans, like proceeds from the recent issue of placement units, will be used to repay loans related to the acquisition of three properties in Ibaraki, Chiba, and Saitama respectively.
Units of Nippon Prologis REIT last changed hands on the Tokyo Stock Exchange at JPY226,600.