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GLP J-REIT refinances ¥8 billion of debt with new sustainability loan
By Mary-Katherine Stinson
Lexington, Ky., July 27 – GLP J-REIT closed on a ¥1.261 billion sustainability loan with Mizuho Bank, Ltd. as part of the company’s total new borrowings of ¥7.4 billion, according to a company news release.
The sustainability loan will bear interest at Tibor plus 17.5 basis points.
It matures July 6, 2029.
The sustainability loan was 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.
The remainder of the financing is comprised of ¥3.429 billion of loans due May 21, 2027 bearing interest at Tibor plus 18.5 bps and ¥2.71 billion of loans due July 12, 2030 bearing interest at Tibor plus 23 bps.
Proceeds from the loans will be used to repay the ¥8 billion of loans due on July 31, used to acquire GLP Amagasaki, a specified asset meeting the criteria of an eligible sustainability project. The remaining ¥600 million of the existing loans will be repaid with proceeds from the issuance of GLP J-REIT 22nd unsecured bonds.
The financing will be drawn down on July 31.
Additionally, GLP signed interest rate swap agreements with Nomura Securities Co., Ltd. and Sumitomo Mitsui Trust Bank, Ltd., converting the interest rate payable into a fixed rate for the new borrowings.
The agreement substantially fixes the interest rate of the sustainability loan at 0.66%.
The interest rate will be substantially fixed at 0.51% for the 2027 loan and 0.798 % for the 2030 loan.
The investment company is based in Tokyo.
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