Nippon Building Fund to close ¥10 billion green loan maturing 2032

By Rebecca Melvin

New York, May 25 – Nippon Building Fund Inc. said it plans to close a ¥10 billion 10-year green loan with Mizuho Bank Ltd. as lender on Friday, according to a notice.

The unsecured, unguaranteed loan is repayable in one lump sum on the repayment date of May 27, 2032.

The loan will bear interest at 0.171%, which is based on one-month Japanese Yen Tibor plus 10 basis points.

It will be executed in line with a green finance framework with a second-party opinion obtained from Sustainalytics.

Proceeds are being used to repay short-term borrowings provided by Mizuho Bank. Those short-term borrowings funded the acquisition of Iidabashi Grand Bloom Real Estate Evaluation Certification S Rank on March 31.

The company will repay ¥8 billion of short-term borrowings with cash on hand. After this financing, the real estate investment trust’s short-term borrowings decreased ¥18 million to ¥18 million; its long-term, floating-rate borrowings increased ¥10 million to ¥36 million; its long-term fixed-rate borrowings remained unchanged at ¥467.5 million; and its bonds decreased ¥8 million to ¥578.5 million.

The office REIT is based in Tokyo.

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