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GLP J-REIT refinances ¥5.23 billion of debt with new ESG loans
By Mary-Katherine Stinson
Lexington, Ky., Aug. 30 – GLP J-REIT closed on ¥4.36 billion of sustainability loans and green loans with MUFG Bank, Ltd. as part of the company’s total new borrowings of ¥5.23 billion, according to a company news release.
There are two loans from MUFG, a sustainability loan totaling ¥3.78 billion and a green loan totaling ¥580 million. These loans will bear interest at 0.93965%.
They mature July 12, 2030.
The loans were added to increase ESG financing. The company’s green finance initiatives address both environmental sustainability and finance projects that contribute to solving social issues. Specifically, eligible green projects include green buildings that contribute to the safety of residents during disaster, development of the local living environment, revitalization of the local community and parenting support.
This expands the total amount of ESG bonds issued by GLP J-REIT, which includes the green bonds and the sustainability bonds, to ¥45.5 billion.
The remainder of the financing is comprised of a ¥870 billion loan due July 12, 2030 bearing interest at Tibor plus 23 bps.
Proceeds from the loans will be used to repay the ¥5.23 billion of loans due on Sept. 1, used to acquire GLP-MFLP Ichikawa Shiohama, a specified asset meeting the criteria of an eligible sustainability project, and GLP Noda-Yoshiharu, a specified asset meeting the criteria of an eligible green project.
The financing will be drawn down on Sept. 1.
Additionally, GLP signed an interest rate swap agreement with Nomura Securities Co., Ltd., converting the interest rate payable into a fixed rate for the ¥870 million loan.
The agreement substantially fixes the interest rate of the loan at 0.726%.
The interest rate will be substantially fixed at 0.956% for the ¥870 million loan.
The investment company is based in Tokyo.
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