Star Asia Investment Corp. entered into separate interest rate swap agreements with Nomura Securities Co. Ltd. and Sumitomo Mitsui Trust Bank Ltd. for two loans with respective amounts of ¥4.00 billion and ¥4.84 billion.
The deals for the loans obtained from a syndicate of lenders arranged by Sumitomo Mitsui Banking Corp. and Mizuho Bank Ltd. will both commence Sept. 6, according to a filing.
The ¥4.00 billion loan with Nomura Securities, which has a maturity of March 22, 2022, will be subject to an interest rate of Japanese Bankers Association one-month yen Tokyo Interbank Offered Rate, or TIBOR, plus 0.1595%. Prior to the agreement, the debt carried a base interest rate of 0.45% on top of the one-month yen TIBOR.
Meanwhile, the ¥4.84 billion loan will carry an interest rate of Japanese Bankers Association one-month yen TIBOR plus 0.212% once the Sumitomo Mitsui Trust agreement takes effect. The interest rate swap for the debt with a base interest rate of 0.60% on top of the one-month yen TIBOR prior to the deal will end Sept. 20, 2023, the real estate investment trust added.
As of Sept. 4, US$1 was equivalent to ¥111.45.